The Government parks the idea of ​​forcing them to also finance RTVE, a possibility that was on the table until a few weeks ago.

The Government parks the idea of ​​forcing them to also finance RTVE, a possibility that was on the table until a few weeks ago.

The Government parks the idea of ​​forcing them to also finance RTVE, a possibility that was on the table until a few weeks ago.

'The cable girls', Netflix series produced in Spain.

Finally, Netflix,HBO and all video platforms in streaming must pay 5% of their income generated in Spain to finance European audiovisual work. This is established in the Draft Audiovisual Law that the Government will launch this Friday at a public hearing and of which it has revealed its main details.

As Invertia had anticipated, the main novelty is that the obligations of OTT platforms are equated with traditional and pay television. On the contrary, the obligation to contribute 3% to RTVE is dropped, as the channels currently do.

In this last case, the Executive has discarded the change because for it it would be necessary to touch the RTVE Law, something that is not in the folder “at the moment”. In fact, until a few weeks ago this obligation was on the table, but it fell out of the final project.

In the case of the fee to pay for European audiovisual works, it is established for all providers of audiovisual, linear or on-demand services established in Spain or in other Member States that direct their services to Spain.

When the turnover generated in Spain exceed 50 million euros, 5% of their income must be used to finance audiovisual work (series and movies). Of these, 70% must finance independent productions and a minimum of 40% in works of any of the official languages ​​of Spain.

Income calculation

If the turnover is less than 50 million, they will have all the previous rules, except for the official languages. All operators that generate income in Spain of less than 10 million euros.

How is this income calculated? The Government has explained that only the income generated in Spainwhich does not necessarily coincide with the income declared by their companies established in our country.

To refine this data further, the new platforms will have a registration obligation, at the same time that the Executive trusts that the CNMC will have a leading role by carrying out specific information requirements -for example, the number of users-. Requirements that do not necessarily have to become public information.

This Law also imposes emission quotas. In the case of linear television, it is obligatory to have 51% of the broadcast of European works and 50% of works in official languages. In the case of OTT like Netflix30% of the catalog will be of European work.

European standard

In the case of this new Audiovisual Lawthe main objective is to transpose the European regulation of the sector approved in November 2018. Brussels says that the Member States have two years to adapt their local legislation to European laws, a term that in this case expires in November 2020, but that has been expanded due to the impact of the coronavirus pandemic.

The community standard seeks greater protection for children against audiovisual content, establish limits on advertising and promote European production. The Spanish Law includes the aforementioned registration obligation for all new platforms; The limits to advertising are changed to 144 minutes in the time slot from 00:00 to 6:00 in the afternoon and 72 minutes from 6:00 in the afternoon to 12:00 at night. In the same way, the protection of minors and subtitled content are reinforced.

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