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The French, in particular, were a headache: In the own words of then French Minister of Culture Aurelie Filipetti, "(the French) are...

The French, in particular, were a headache: In the own words of then French Minister of Culture Aurelie Filipetti, "(the French) are absolutely not going to close the door to (Netflix), but they need to get used to the differences with the French market and how they can participate constructively." France has some of the world's toughest rules for protecting its home-grown film and music industries, and none of these will make it easy for a foreign service like Netflix to make a serious dent in the market. The company, which eventually started offering SVoD services in France around November 2014, faces higher taxes than it is used to, including 20 percent VAT, as well as obligatory investment quotas from its profits. Indeed, SVoD services based in France with annual earnings of more than 10 million euros are required to hand over 15 percent of their revenues to the European film industry and 12 percent to French filmmakers. Meanwhile, France insists that 40 percent of mainstream broadcasters' content must be in French, while existing SVoD providers - including Canal Plus' "Infinity" and Wild Bunch's "Filmo TV" - are currently forced to wait 36 months after a film's cinema release before they can stream that content online. These rules - the so-called "Cultural Exception" - mean that France retains a healthy film and music industry despite fierce competition from the Anglo-Saxon world. And while some commentators have said this model is outdated as ever-increasing numbers of people get their audiovisual entertainment online rather than from more traditional TV and radio media, France is nevertheless continuing to do all it can to protect its homegrown industries. As mentioned above, despite these hurdles, Netflix eventually started offering SVoD services in France, the toughest foreign market to enter as of yet, during the fourth quarter of 2014. At MIPCOM 2014, Netflix chief content officer Sarandos went on record for saying that viewer behaviour, in Germany and France, was "on par with our successful launches elsewhere in the world" and that Netflix prison dramedy 'Orange is the new black' was the most watched show on the SVoD service in all of the six new European territories. Sarandos added that the viewing mix in Europe - about 70 percent television series and 30 percent feature films - was also similar to that on Netflix services around the world. Therefore, the major threat to SVoD providers, and their more traditional video distributors, lies elsewhere. The culprits: illegal video streaming programs and providers While the illegal downloading of music has decreased compared to previous measurements (about a quarter of people who use music streaming services still download music illegally, compared to 32 percent in September 2014), 35 percent of people who use SVoD services are still downloading movies and TV series illegally. This is according to the study Trends in Digital Entertainment, from January 2015, which is conducted by GfK and appears once per quarter. Some illegal SVoD providers are alive and kicking such as Time4popcorn. They offer SVoD services to members of the public, on the internet, without having paid proper and agreed licensing royalties to the owners of the rights in the video content which is being streamed on their channels.

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