Apple, Netflix, Amazon, and Disney+ have signed a long-gestating agreement with France’s broadcasting authority, the Conseil superieur de l’audiovisual (CSA) to start investing 20% of their annual revenues on French content, reports Variety. The CSA expects the investment to be between €250 million ($282 million) to €300 million ($330 million) on average per year.
The CSA is a French institution created in 1989 whose role is to regulate the various electronic media in France, such as radio and television. Its goal is to “guarantee the exercise of broadcasting freedom.”
The agreement came together after months of negotiations between French industry guilds, streamers and TV groups. A source “close to the negotiations” told Variety that €200 million ($225 million) will be invested by Netflix alone.
Per the deal, streamers will have to dedicate 80% of the 20% invested in French content to audiovisual works, such as shows, movies and documentaries that will world premiere on the platform. The remaining 20% — or 4% of streamers’ total turnover in France — will be invested in movies that will be theatrically released and will be subjected to the country’s strict windowing rules.
Why did Apple, Netflix, Amazon, and Disney+ make the deal? It’s due to new investment obligations that were published in the French decree that came out in July and stemmed from the implementation of the Audiovisual Media Services Directive (AVMS). The legislation was put forth by the European Commission to even the playing field between streaming giants and existing players across Europe. France is the first country to have set new regulations as part of the AVMS. Variety says other countries within the E.U. are expected to follow soon.
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