TH
The EC doesn't really have one single mind and different commissioners are pulling in different directions. Some say they want more competition, but others want more consolidation to create bigger companies that are able to compete with American rivals. It is not unlikely that more consolidation will be the result if the concept of territorial licensing is undermined.
Some articles to illustrate the differing opinions:
http://www.politico.eu/article/busy-signal-vestager-gives-telecom-deals-a-close-look/
http://www.politico.eu/article/geoblocking-poses-an-issue-for-start-ups/
If pay TV operators in smaller countries become free to compete with those in larger, the rights costs will eventually be adjusted to reflect that they are competing on a common market. Otherwise you could simply set up a pay TV company in Malta or Luxembourg, pay for rights in that market and drive the others out of business. What would actually happen is that the smaller companies would be driven out of business by the larger ones who can afford to pay pan-European licenses.
There was a similar situation in the US in the late 70s when some local stations became "superstations" that were carried nationwide on cable even though they had only paid for the rights to air programmes in their local markets. Those loopholes were eventually closed by the rightsholders and the superstations were forced to acquire nationwide rights.
I think it is a reasonable guess that pay-TV operators in small countries pay less for the rights to content than pay-TV operators in bigger countries, as the larger countries can expect greater revenue and thus will make more money from the content than operators in smaller countries.
If smaller country-based operations can compete with Sky UK in the UK, this will generate an element of competition. Of course then rights holders may start expecting more income from the smaller operators - as they become bigger. So it will potentially generate some competition?
I guess this is the competition that the EU want?
It also allows for ex-pats to continue watching their domestic pay-TV and streaming services?
Wonder where this leaves licence-fee and state funded services like the BBC? Freesat means that BBC services are available outside the UK (subject to dish size issues) so there is no issue there, but the BBC do geo-block iPlayer - including the live streams which require a TV licence in the UK. Similarly in France there is a Freesat-from-Sky equivalent that requires a viewing card. Should a UK resident be able to purchase/lease a viewing card in the same way as a French national can? Should a UK resident be able to subscribe to Canal Digital Denmark?
If smaller country-based operations can compete with Sky UK in the UK, this will generate an element of competition. Of course then rights holders may start expecting more income from the smaller operators - as they become bigger. So it will potentially generate some competition?
I guess this is the competition that the EU want?
It also allows for ex-pats to continue watching their domestic pay-TV and streaming services?
Wonder where this leaves licence-fee and state funded services like the BBC? Freesat means that BBC services are available outside the UK (subject to dish size issues) so there is no issue there, but the BBC do geo-block iPlayer - including the live streams which require a TV licence in the UK. Similarly in France there is a Freesat-from-Sky equivalent that requires a viewing card. Should a UK resident be able to purchase/lease a viewing card in the same way as a French national can? Should a UK resident be able to subscribe to Canal Digital Denmark?
The EC doesn't really have one single mind and different commissioners are pulling in different directions. Some say they want more competition, but others want more consolidation to create bigger companies that are able to compete with American rivals. It is not unlikely that more consolidation will be the result if the concept of territorial licensing is undermined.
Some articles to illustrate the differing opinions:
http://www.politico.eu/article/busy-signal-vestager-gives-telecom-deals-a-close-look/
http://www.politico.eu/article/geoblocking-poses-an-issue-for-start-ups/
If pay TV operators in smaller countries become free to compete with those in larger, the rights costs will eventually be adjusted to reflect that they are competing on a common market. Otherwise you could simply set up a pay TV company in Malta or Luxembourg, pay for rights in that market and drive the others out of business. What would actually happen is that the smaller companies would be driven out of business by the larger ones who can afford to pay pan-European licenses.
There was a similar situation in the US in the late 70s when some local stations became "superstations" that were carried nationwide on cable even though they had only paid for the rights to air programmes in their local markets. Those loopholes were eventually closed by the rightsholders and the superstations were forced to acquire nationwide rights.