European Parliament Approves New Content Quotas for VOD Services

The European Parliament voted to approve new rules for audiovisual media services, including the requirement that 30 percent of content on VOD services originate from the region.

On-demand platforms operating within the EU are also being asked to contribute to the development of European audiovisual productions, either by investing directly in content or by contributing to national funds. The level of contribution in each country should be proportional to the on-demand revenues in that country.

The updated directive also calls for increased protection of children “from violence, hatred, terrorism and harmful advertising.” For video-sharing platforms, this includes a requirement that they act “quickly when content is reported or flagged by users as harmful.” In addition, there are strict new rules on advertising and product placement in kids’ content. Advertising can take up a maximum of 20 percent of the daily broadcasting period between 6 a.m. and 6 p.m. In the prime-time window of 6 p.m. to midnight, advertising will only be allowed to take up a maximum of 20 percent of the broadcasting time.

The deal still needs to be formally approved by the Council of EU ministers. Member states have just under two years to enforce the new legislation. The directive was approved by 452 votes to 132 against and 65 abstentions.