Netflix challenges French government and says format quotas threaten freedom

American streaming platforms Netflix, Disney+ and Prime Video filed appeals against new rules in France that require them to allocate 20% of their investments in the country to three areas -animation, documentaries and live shows-, according to French press reports.

The vice-president of Netflix in France, Pauline Dauvin, published an article in Le Monde contesting new rules imposed by the French government that force the quota on foreign streaming services. According to Dauvin, the measure interferes with editorial freedom, treats streaming differently from traditional broadcasters and could limit investments in other genres, such as fiction.

In the article, Netflix claims to invest more than EUR 250 million per year, or approximately R$ 1.4 billion, in French productions and says it has appealed to the French Council of State to challenge the rule. The company maintains that it supports the French “cultural exception”, which distinguishes French cultural goods from ordinary commodities, but advocates a “more balanced” regulatory model, arguing that the continued increase in investment obligations could compromise the sector’s sustainability and content diversity.

The decree in question, published in December last year, establishes new investment obligations for streaming platforms in France. It determines that at least 20% of audiovisual production must be directed to three specific categories – animation, documentaries and recordings of shows. For companies with annual revenues exceeding EUR 50 million, 75% of this portion must be allocated to new works.

“The objectives of this decree are clear. If this diversity quota is maintained, it will create a precedent in favor of increasingly restrictive and asymmetrical rules, concentrated on streaming services,” wrote Dauvin.