EU Treads Softly Towards Cross Border Content Portability

The EU’s member states are reaching towards consensus over cross border portability of content between European countries with a transitional approach allowing broadcasters and media rights holders time to adjust to a more open market. This emerged during the EU’s recent Competitive Council meeting, where delegates showed favor of an opt-in for now so that the default would remain for cross border controls to remain in place.

However this could morph into an “opt-out” regime as the second stage of migration towards cross border portability. The main target here is online content both within pure play OTT services such as Netflix and also TV Everywhere offerings of pay TV operators such as Sky Go, given that traditional digital terrestrial, cable TV, IPTV and to an extend satellite services are by their nature geo-restricted. But it is likely to embroil all content providers and broadcasters given the continuing growth in online distribution coupled with the EU’s determination to advance cross border access as part of its grand scheme to modernize the continent’s copyright framework, so as to allow “a better circulation of content, offer more choice to Europeans, strengthen cultural diversity and provide more opportunities for the creative sector.”

The EC’s content portability initiative is due to come into being by mid-2017 at the same time that mobile phone roaming charges are abolished in a parallel move towards a single media and communications market. But it has had to rein back over portability in the face of strong lobbying from holders of premium sports and movie rights. The initiative has also been held up by wider concerns over potential for abuse where people subscribe to services in countries with lower subscriptions and then spend most of the time accessing them in their home state. To cater for this there would be restrictions over how many days each year a user could access content they had paid for outside their home country. This would be enforced under the concepts of “habitual” and “temporary” residence, but delay has been caused by debate over how long the period of temporary residence should be to cover holidays and business trips while preventing abuse.

When it comes to premium content portability the issue is that premium rights holders tend to extract more money from broadcasters by negotiating each country separately, given that some such as the UK and Germany attract much higher payments than say Greece and Romania. For that reason the EU’s executive arm the European Commission (EC) has stopped short of preventing geo-blocking of video services even though it has moved to end other lingering cross border controls over trading. Instead, it has stated that “facilitating the access to audiovisual services across borders is part of other initiatives under the Digital Single Market strategy”. In other words it is still aspirational.

Not surprisingly it is precisely premium content such as films, series and sports broadcasts, which most Europeans want to watch while travelling. According to the EC’s own figures, more than 50% of Europeans who had tried to access live events such as sports were unable to access them while abroad. Then 40% of Europeans who had tried to access films and TV series while travelling in the EU had been prevented from doing so.

While rights holders are ambivalent about cross portability commercial broadcasters are mostly more enthusiastic. The Association of Commercial Television in Europe (ACT) has come out in support, although with concerns over lack of clarity and agreement over the need to proceed more slowly.

The European Broadcasting Union (EBU), which represents all broadcasters in principle, supports the idea of an ‘opt-in option’ and appears satisfied with the watered down time table. “We welcome the outcome of today’s discussions because they have clarified how public service media organizations can offer access to their programs to citizens who are travelling abroad in the EU,” said EBU head of European affairs Nicola Frank. “The possibility for EBU members who offer their online services without payment to opt-in to the portability system is the right way forward.”

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