EU to create Single Digital Market, easing border restrictions
The European Union agreed Tuesday on new rules allowing subscribers of online services, as Netflix or Amazon Prime, in one E.U. country access to them while traveling in another.
The new “portability” ruling is the first step of regulation under a drive by the European Commission to introduce a single digital market in Europe. Announced in May 2015 on the cusp of the Cannes Film Festival, the proposed Digital Single Market was met with full-throated opposition from Europe’s movie and TV industry, which viewed it as a threat to its territory-by-territory licensing of movies and TV shows.
In practical terms, this means, in an example cited by the Commission, that if a French consumer subscribes to Canal Plus’ film and series online services, the user will be able to access films and series available in France when on holiday in Croatia or a business trip in Denmark.
The online service providers will have nine months to adapt to the new rules, which means will come into force by the beginning of 2018. Once formally approved, EU consumers on the move will be able to enjoy entertainment as if at home in early 2018, the commission said.
"Today's agreement will bring concrete benefits to Europeans," said Andrus Ansip, the commission's vice-president for the Digital Single Market. He added; ”Agreements are now needed on our other proposals to modernise E.U. copyright rules and ensure a wider access to creative content across borders. I count on the European Parliament and Member States to make it happen.”
The deal comes a week after the EU announced a deal to end mobile roaming charges, starting this summer. And both come almost two years after the EU unveiled an ambitious Digital Single Market plan to transform the region’s fractured marketplace for things like mobile services, video streaming, and ecommerce.
In other words, if a broadcaster is licensed to serve one jurisdiction in the E.U. with an online service, they would be authorized to serve that online service to all E.U. member states.
Europe’s industries see this as a far more serious threat to the territory-by-territory licensing of their movies and TV shows which is the backbone of their business in Europe.
Half of people aged 15-39 believe content portability when travelling is important, and this new regulation means they will be able to access content abroad in the same way they access it at home.
Online content service providers such as Netflix, MYTF1 and Spotify will verify the subscriber’s country of residence by using means such as payment details, the existence of an internet contract or checking the IP address.