France leads the way in push for local animation quota for international streamers

Animation producers’ associations around Europe are pushing for animation to be included in streamers’ local content quotas as part of the EU’s revamped Audiovisual Media Services Directive (AVMSD).

The AVMSD is the updated legal framework to establish a safe, pluralistic and open audiovisual media landscape in Europe.

The implementation of the AVMSD, which allows for each European country to be able to choose their own interpretation of the directive, is currently in varying stages of progress around Europe. It aims to ensure local producers in Europe get a fair share of commissions from international streamers and level the playing Geld between the latter and domestic broadcasters.

A key part of the decree is the stipulation for non-domestic VoD services to oWer a minimum of 30% local product from a variety of genres to subscribers in each market.

In July, as part of the AVMSD, France became the Grst country in the EU to introduce new regulations requiring streamers operating in the territory to allocate a speciGed proportion of their revenues to content produced there.

This will require NetRix, Amazon, Disney+ and others to invest 20-25% of their French income in local productions. The edict gives governments leeway to set additional rules in terms of investment in local production, as France has chosen to do.

French animation producers’ union AnimFrance (formerly known as the SPFA) is now working with French media body the CSA to ensure this quota includes a clause relating to animation production.

Philippe Alessandri, who is president of AnimFrance, chairman of Animation in Europe and CEO of French indie and Audrey’s Shelter producer Watch Next Media, told C21 he was optimistic the quota for animation for streamers would be introduced in France.

“The CSA has left no doubt that there will be a speciGc quota for animation for the platforms that have animation in their catalogue. None of the platforms have said they’re not interested in animation. They are arguing about the quota for documentaries, but they’re not arguing about the quota for animation,” said Alessandri.

If implemented, the quota would mirror those that currently apply to certain French public and commercial broadcasters, which require them to invest a chunk of their programming budgets into local animation.

Alessandri added that Animation in Europe has been urging its members, which include animation producers’ associations from over 15 countries, to lobby their local governments to ensure animation is included in their implementation of the AVMSD.

In Italy, the decree was approved on November 4. It will require international streamers to reinvest 20% of the net revenue they generate in Italy back into Europe production, half of which must be Italian. However, this will begin at 17% in 2022 and rise to 18% in 2023 before reaching 20% in 2024.

“We will have more regulation, perhaps a quota for animation, but it’s not yet written,” said Anne-Sophie Vanhollebeke, president of local animation producers’ union Cartoon Italia and a producer at Milan-based Studio Campedelli.

With France and Italy furthest ahead when it comes to pushing for European animation quotas, countries such as Germany are lagging behind, to the frustration of local producers.

Dirk Beinhold, founder and co-CEO of Akkord Film in Germany and vice-chairman of Animation in Europe, said: “It seems Germany is at a much earlier stage than France and Italy. But after speaking to other European colleagues, there are countries where the process hasn’t even begun yet.”

Beinhold is also a founding board member of the new animation branch of the German Film Academy and a board member of the animation branch of the German Producers Alliance. The latter has been working with the German Producers Association for the past 15 months to establish the German industry’s position on the AVMSD, which it set out earlier this year.

“Since then, we’ve had the elections in Germany and we don’t have a new government yet. Hopefully, the new government will listen and understand the necessity of the decree being put into action,” said Beinhold.

“We want to see the streamers invest 25% of the turnover they make in Germany into European content, 80% of which should be in the German language and from independent producers, with certain rights remaining with the producer. Also, ideally, there should be a limited licence period.

“To cover animation, we ask that streamers should invest in all programme genres that already exist on their platforms. We haven’t yet got into the detail about obligations to invest in the diWerent genres, but that is obviously the next step.

“As far as I know, there has only been one single animation production commissioned by a streaming platform from a German producer. It’s the opposite with live action, which is already booming, but not quite as much as it is in he UK.”