The Coming DSM Wars
The DSM wars are coming! WTF is that? Digital Single Market. The European Union is proposing new rules to create a single, unified market for the selling of goods, and that includes film. For consumers, this is a no-brainer – I should be able to buy a film in Paris and watch it in Berlin, no matter what service I’m using. For platforms, it’s much easier as well – Netflix could license titles for all of Europe instead of doing individual deals for every territory. As a film industry person, I’ve also been hampered by the current territorial system when I’ve been sent screeners – as a judge for a film fest – but couldn’t watch them because the DRM (digital rights management aka bullshit tech) wouldn’t allow me to view the content based on the country I was in at the time. From a business perspective, anything that makes it easier for consumers and new businesses to operate easily should win, but…it’s not so simple.
As Variety and others have reported, and most in the industry know, the film business is built in myriad ways on territorial licenses. A producer might raise money to make a film by pre-selling rights in certain territories. Sales agents make money, and this flows back to filmmakers (in some dream scenario) by selling licenses in different territories. Many films wouldn’t make back their budget, not to mention any meaningful profit without this system. There’s also a cultural argument to be made – this would mean only big players (Netflix) could afford to license titles for all of Europe, and that would decrease competition and likely decrease the diversity of content offered. The fight is shaping up now, and promises to be interesting. Of course, the whole idea could collapse with the entire EU the way things are going lately in geo-politics, but this is an important thing to watch for American indies as well – at least those lucky enough to make foreign sales.
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