European Audiovisual Media Policy in the Age of Global Video on Demand Services: A Case Study of Netflix in the Netherlands

Abstract

This article considers the provisions in the European Union’s revised Audiovisual Media Services Directive concerning video on demand (VOD) services and the effectiveness of supply-side cultural diversity regulations in achieving their purported policy goals of increased production and consumption of European works. Because the Netherlands is the ‘country of origin’ to several multinational VOD services, including Netflix, we conducted a case study of this specific national context. We examine the quota for and prominence of European works, as well as different forms of financial obligations. We find that the former two policy tools may require new strategies to effectively reach their objectives in a nonlinear context. Our evidence also indicates that the latter remains controversial in the domestic audiovisual industry, as stakeholder positions are dependent on the type(s) of production stimulated. Based on this, we argue that securing the independence of producers and ensuring VOD services are transparent with respect to performance data are essential to promoting source diversity and a sustainable value chain.

Keywords: Audiovisual Media Services Directive, cultural diversity, media policy, quota, prominence, nonlinear television, video on demand, regulation, Netflix