Streaming, Europe scraps geoblocking
In the Cesarini area, in this last bit of parliamentary activity, the MEPs provide an unexpected thrill, trying to get the proposal to remove geoblocking, or geographical blocks for streaming services focused on films, TV series and broadcast of live sporting events
The code name is geoblocking and it is mainly known in the gaming sector, constituting a regional barrier which, until the recent past, prevented playing, for example, a title intended for the US market on a console for Europe. At one time it also made sense, given the different video coding formats of analogue televisions (Pal, NTSC, etc…). Now it would be anachronistic and in fact various barriers have gradually fallen. However, it remains in streaming. But the European Parliament no longer agrees.
THE EU AGAINST GEOBLOCKING
The desire, lobbying activity permitting, is to deploy a new regulation on the subject of streaming events by 2025. It's an uphill road, because the interests at stake (not only in the stadiums) are enormous and there is also the renewal of legislators and commissioners involved, given the now imminent expiration of the legislature.
FREE MOVEMENT OF PEOPLE, GOODS BUT NOT STREAMING?
It is no coincidence that although the EU itself has always been against geoblocking (it would also be a paradox if it were not, given that the very existence of the Union is based on the abolition of barriers and customs to allow the free movement of people and goods between member countries) the sector in the 2018 regulation had benefited from an ad hoc exemption: “Audiovisual services, including those whose main objective is to provide access to the broadcast of sporting events, and which are provided on the basis of licenses exclusive territorial rights, are excluded from the scope of application of this regulation".
The provision is contained in a law whose title goes exactly in the opposite direction: “Measures aimed at preventing unjustified geo-blocking and other forms of discrimination based on nationality, place of residence or place of establishment of customers within the market internal and which modifies the regulations". In short, a nice own goal for the European legislator.
THE EU REVOLUTION
But in the Cesarini area, in this last remnant of parliamentary activity, the "Euromen" give an unexpected thrill, trying to get the proposal to remove geographical blocks for streaming services focused on films, TV series and broadcasting straight into the goal. of live sporting events.
With 376 votes in favour, 111 against and 107 abstentions, the MEPs passed the ball to the Commission which will have to prepare a new text to frame the matter in the next two years. More than a ball, in short, a hot potato that could fall to Ursula Von der Leyen in the event of an encore or to Mario Draghi if the recent rumors prove true or to others. What is certain is that the leader of the 26 commissioners will have to have sufficiently broad shoulders to implement what promises to be a real revolution in the world of streaming.
THE PRACTICAL CONSEQUENCES OF GOODBYE TO GEOBLOCKING
If the new regulation were to remove all barriers, what is currently prohibited would be permitted and therefore a resident in Italian territory could subscribe to a streaming service from another country.
For example, if in Spain there was a company with the rights to broadcast Serie A – currently in the hands of Dazn for Italy – and offered viewing of the matches at a lower price, a resident of Italy could subscribe to that service. It's called free competition and it already exists, more or less with difficulty, in all other sectors.
WHO DOES NOT AGREE
Is everyone happy? Not exactly. Luigi De Siervo , CEO of the Lega Serie A and number 1 of Infront Italy (a company that deals with sports marketing), has already expressed his opinion: "We strenuously oppose the abolition of geoblocking because it would put the economic sustainability of the football and film sector across Europe, with an undue advantage to the large platforms Netflix, Amazon or Disney. There is a risk of shattering the entire system."
The European hope of opening the sector to the free market could be limited in the event that a single multinational imposed the same prices in all EU countries or in the case, more likely, of a cartel between the few market operators. But even in that case it would be up to the Commission to monitor, blow the whistle and raise the red card. And in antitrust matters, as we know, the EU is a very rigorous arbiter.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/streaming-leuropa-rottama-il-geoblocking/ on Thu, 14 Dec 2023 08:09:24 +0000.