Thu. Jul 29th, 2021

The video on demand industry is experiencing a boom . The limitations on mobility imposed by the pandemic have accelerated the consolidation of a new form of audiovisual entertainment consumption that emerged a few years ago thanks to the technological revolution.

In the world there are already, according to the latest studies, 850 million households subscribed to a streaming platform ,the real audience is even larger, since the keys of the same account are often shared. \

The development of the internet allows access from any device (television, tablet or mobile phone) to an ever-growing catalog of series, films or documentaries. Digital entertainment has discovered a very important economic vein that in 2025 will generate revenues of more than 100,000 million euros.

A change as disruptive as this produces collateral effects in the sectors that dominated the audiovisual business. The world of cinema, for example, is one of the victims. However, streaming also brings opportunities. It was seen during the confinements, when offering exit to the productions when the cinemas were closed.

There is also fierce competition for which platforms must invest millions of dollars to differentiate themselves from their rivals and that money ends up leaking to all sectors of the sector. Until now, the business model of the operators is based on subscriber fees, but in the future the economic profitability of their users’ data through big data techniques will be increasingly important .A material as sensitive as personal information requires transparent treatment and supervised by the authorities.

Many of the video-on-demand platforms operating in Spain have so far used very advantageous tax strategies by declaring only a minimum percentage of their turnover and deriving the bulk of the income to intermediary companies located in States with more beneficial tax systems.

Netflix recently assured that it will change its modus operandi to tax all the activity it generates in the local market. It would be important for this decision to materialize and for the rest of the companies to copy the example. The public coffers are now exhausted by the efforts to mitigate the effects of the coronavirus and it is essential that taxpayers comply with their obligations.

America’s dominance in the streaming business is staggering. If in the 20th century the big names in Hollywood imposed their vision of the world, now it is Netflix, HBO, Amazon, Disney or Apple that are conquering homes. It is important to regulate audiovisual coexistence in order to guarantee its space to European culture and industry.

In November, the preliminary draft of the new General Audiovisual Communication Law was presented. The text, which transposes a European directive with some delay, establishes that video-on-demand companies must allocate 5% of their income in Spain to finance European films and series, as RTVE and national private channels already do. And dedicate 30% of its catalog to European works.

Diversity always enriches the viewer’s options.

By Ray Kroc

Ray always had a business mindset and wanted to make difference in the world by empowering businesses across the globe. Keeping this in mind, he started Industrialit that brings latest IT news from all around the world. In his free time, he loves to take business lessons.

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