International platforms located in Spain such as Netflix will have to allocate 5% of their income generated in Spain, due to the new law approved by the Government.
Netflix, Amazon Prime Video or HBO will be forced to allocate 5% of your income to the financing of European audiovisual work. The Government has approved that platforms located in Spain with an annual turnover of more than 50 million euros must comply with this new measure.
This novelty is included in the preliminary draft of General Law of Audiovisual Communication, according to sources from the Secretary of State for Telecommunications.
5% of the income from these international platforms will be used both as a contribution to the Film Protection Fund and for the European audiovisual work.
In addition, of this amount, a minimum of 70% must be used to finance audiovisual works by independent producers and a minimum of 40% to finance movies from independent producers of any gender, in any of the official languages of Spain.
In the case of those that generate a turnover in Spain of less than 50 million euros per year, they must allocate 5% of said income to the financing of European audiovisual work, to the purchase of rights to finished European audiovisual work or to the contribution to the Cinematography Protection Fund. At a minimum, 70% should be used to finance works by independent producers.
The draft law exempts providers from this obligation with a turnover generated by their services in Spain of less than 10 million euros per year.
EMISSION FEE OBLIGATION
On the other hand, the providers of the linear television audiovisual communication service will have to reserve 51% of the broadcast time for European audiovisual works, and 50% of this percentage will be for Official languages in Spain and, of this, 10% will be reserved for works by independent producers.
These two sub-quotas will not apply to those providers established in Spain but who direct their services exclusively to other member states of the European Union.
For their part, streaming video platforms such as Netflix o HBO must reserve 30% of its catalog for European works, and 50% of that amount will also be for works in official languages in Spain.
This sub-quota will not apply to those providers established in Spain but who direct their services exclusively to other EU member states.
In relation to the possibility that the platforms contribute to financing RTVE as other television and telecommunications operators do, the sources of the Secretary of State have clarified that this tonteproject "does not touch" the Law of Financing of the public Corporation and, therefore, does not establish such obligation.
Another novelty included in the draft law is that, for the first time, video exchange platforms established in Spain will be required to be included in the State Registry of Audiovisual Communication Service Providers, for the "adequate control" of compliance of the obligations imposed by the Directive.
Regarding advertising on linear free-to-air and pay television, two types of more flexible limits are established depending on the time zone: a maximum of 144 minutes between 6:00 a.m. and 6:00 p.m., and a maximum of 72 minutes between 6:00 p.m. and 12:00 a.m. Until now the established limit was 12 minutes per hour.
The aforementioned sources have explained that the reason for this flexibility is that "given the enormous growth of the audiovisual communication service offer" the user has "more freedom to choose and, therefore, you can change the channel in case you consider that the advertising is excessive.
In addition, qualitative obligations are established that previously applied only to DTT operators. With the draft, these are extended to pay television, 'on demand' services and video sharing.
Specifically, it psteal any advertising content that violates the dignity or old age of women, illicit and subliminal advertising, as well as that which generates social alarm. Advertising content referring to tobacco, drugs and alcohol above 20 degrees is also prohibited.
In this way, the future Law will carry out the transposition into the Spanish legal system of Directive (EU) 2018/1808 of the European Parliament and of the Council, of November 14, 2018.
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