European Commission looks to tax on-demand video streaming - report

Companies such as Netflix and Amazon Prime offering video-streaming services in Europe may be hit with a tax to help fund the production of European films and television programmes, a report says.

The European Commission (EC) has come up with a draft regulation that said Eurozone members might require providers of on-demand audiovisual media services to contribute financially to the production of European works, the website Politico reported.

The regulation, a copy of which was obtained by the Europe-focused news hub, said that on-demand-video streaming services would need to ensure at least 20% of their catalogues for viewers in the Eurozone were European productions. There was no quota at present.

EC's plans -- outlined in a 32-page draft of the Audiovisual Media Services Directive -- also stated member nations would be able to impose financial contributions to on-demand services within their jurisdictions.

Such financial contributions could be defined as direct investments or levies allocated to national film funds.

These draft reforms were part of the EC's update of audiovisual media laws for a market increasingly moving towards online internet platforms and mobile devices.

The commission has estimated that 315 million Europeans logged on to the internet each day, and a Digital Single Market could add up to €415 billion to single-currency bloc's collective economy.

The draft plans represented a key element of the Digital Single Market, which has the brief of creating a seamless economy for online activities by removing national barriers to streaming, online delivery, copyright and networks.

The proposals would also limit child viewing of advertisements for salty, fatty, sugary and alcohol products, the draft directive said.