Session
Global Digital Governance & Cooperation
Governing Digital Economy
Organizer 1: Ichiro Mizukoshi, Nippon Telegraph and Telephone East Corporation
Speaker 1: Ichiro Mizukoshi, Technical Community, Asia-Pacific Group
Speaker 2: Toshiya Jitsuzumi, Civil Society, Asia-Pacific Group
Speaker 3: Nami Yonetani, Private Sector, Asia-Pacific Group
Cho Changeun, Civil Society, Asia-Pacific Group
Panel - 90 Min
A. How can Fair Contribution regulations ensure a balanced and equitable sharing of network investments between VoD operators and telecommunications carriers? B. What are the potential benefits and challenges of implementing Local Content Contribution regulations to promote local cultural representation and support domestic creative industries? C. What implications do these regulatory proposals have for the future growth and competitiveness of the VoD industry, and how can stakeholders adapt to navigate the changing regulatory landscape?
What will participants gain from attending this session? Attending this session will give participants valuable insights into the regulatory landscape surrounding Video-on-Demand (VoD) operators. They will comprehensively understand the Fair Contribution and Local Content Contribution regulations being discussed in various regions. Participants will learn about the motivations driving these regulations and their potential impact on the VoD industry. They will also be able to engage in thought-provoking discussions regarding the future regulatory landscape, exploring the evolving dynamics between VoD operators, telecommunications carriers, content creators, and regulatory frameworks. Ultimately, with a deeper understanding of VoD regulations, attendees will leave the session being able to navigate and adapt to the changing landscape of VoD industry.
Description:
In the digital realm, Video-on-Demand (VoD) platforms such as Amazon PrimeVideo, HBO Max, Hulu, Netflix, Sling TV, and YouTube Premium hold immense influence, with a staggering 1.72 billion global subscribers in 2021. As video content accounts for a significant portion of internet traffic, VoD operators have emerged as vital players in the online sphere. Two regulations concerning VoD operators are being discussed, particularly in Korea and Europe. The first regulation, Fair Contribution, proposes that VoD operators share the network investment burden incurred by telecommunications carriers to manage the growing data traffic. Recognizing their pivotal role, this measure emphasizes the operators' responsibility in addressing infrastructure demands. The second regulation, Local Content Contribution, imposes local content quotas and financial investment obligations for local content on VoD operators. Authorities are resorting to such regulations to protect local creative industries against the encroachment of global VoD operators and of foreign media industries. In this session, we will provide an overview of these regulations and delve into their background, aiming to illuminate their motivations and potential implications. Join us as we explore the evolving relationship between VoD operators, telecommunications carriers, local content creators, and regulatory as well as cultural frameworks. We will discuss the future regulatory landscape and engage in thought-provoking conversations about the path forward for this critical sector.
Expected outcome: Enhanced understanding: Participants will gain a deeper understanding of the Fair Contribution and Local Content Contribution regulations, including their motivations, potential impact, and implications for the VoD industry. Specific Outputs: Stakeholder networks: The session will allow participants to connect and form networks, fostering ongoing collaboration, knowledge-sharing, and dialogue on VoD regulations and related matters.
Hybrid Format: This session is designed as an interactive and participative session. Each speaker's presentation will be followed by a short question-and-answer period, and we will also use Slido.com to create a quick poll to aggregate and share the voices of our participants.
Report
Regulations on VODs may cause the market to shrink, so when implementing such regulations, the purpose and effectiveness of the regulations should be thoroughly discussed with all stakeholders based on open and precise data.
This workshop discussed the regulatory landscape and its impact on VoDs (Video on Demand operators), focusing on “Fair Contribution” and “Local Content Contribution.
Fair Contribution:
"Fair contribution" denotes the monetary or collaborative support that should be provided by OTT firms, particularly big techs that dominate VoD market, towards the enhancement of broadband networks that underpin internet video services, or an EU policy debate relating to this issue. (Prof. Jitsuzumi)
Local Content Contribution:
"Local content contribution" refers to various initiatives undertaken by video streaming platforms to promote local (domestic) content. Since around 2020, the European and British Commonwealth countries have been imposing local content requirements, including local content quotas, prominence obligations, and financial contribution obligations on video streaming platforms. This is done with the intent of safeguarding their traditional audiovisual media industry and culture from global platforms, particularly the U.S. VoD giants. (Dr. Yonetani)
Dr. Jitsuzumi gave the history of the discussion on Fair Contribution and the latest situation in each country. Dr. Yonetani presented on Local Content Contribution, including examples from various countries. Mr. Mizukoshi offered speculation on the current situation in Japan, where there is little discussion of these regulations and the reasons for this. In response, Ms. Cho introduced the fact that these two debates are active in Korea and explained the background and status of the Netflix vs. SK Broadband lawsuit that triggered the global Fair Contribution debate.
Two points of discussion were exchanged with the participants.
Q1) Are there any potential drawbacks or unintended consequences of introducing Fair Contribution and Local Content Contribution?
The discussion resulted as follows:
While the significance of regulations is understandable, excessive regulations may lead to the withdrawal of VoD from a country. To strike a balance, regulators have to restrain implementation, clarify importance, and use evidence for decisions. All stakeholders must improve data transparency and respect accountability to the public when seeking fair contributions.
Q2) What new regulations, if any, will be imposed on major VoDs operators like Netflix?
The discussion resulted as follows:
Possible future regulations for VoDs include rules on information provision during disasters and restrictions on cross-media ownership when they expand their content offerings from entertainment to news and more. The concept what we might term "Platform Neutrality" has been introduced.
Mr. Mizukoshi agreed that with the exception of the Universal Service Fund rule, related regulations should be kept to a minimum. Thus, the overall opinion can be summarized as follows:
Regulations on VoDs may cause market shrinkage. Therefore, they should be implemented with their purpose and effectiveness thoroughly discussed by all stakeholders based on open and precise data.