Netflix will have to comply with some French and European regulations. Notably, they will be barred from streaming films under three years old. From January 2015 onwards, Netflix will also have to pay a two percent tax if their annual earnings are more than 10 million euros, following a recent decision by the French Culture Ministry to tax operators based abroad.
In France many close to the film industry fear Netflix will drag subscribers away from Canal+, which is currently the main financier of French-made films.Bold by HSIB, of course.
"There is a particularity in France in that television channels finance domestic productions. Their level of investment is calculated according to the number of subscribers," Florence Gastaud, head of a union of French producers and authors, explained. "Therefore if the number of subscribers goes down (as some move to a Netflix subscription), the investment in domestic production goes down."
In another possible hurdle, France's Council of State, a body that advises the government on legal issues, on Tuesday recommended government oversight over the algorithm that Netflix uses to present series and movies, to make sure French and European content is well positioned.No wonder they built Liberty Enlightening the World for export only.