Despite the critical success, there will be no season 2 of the series Funny on Netflix. French production is not profitable enough, explains the platform. It is precisely his income that is the subject of lively debate in Switzerland. In the Middle East, it is the content of certain films and series that arouses controversy.
In Switzerland a referendum on the Netflix tax rate
On Sunday May 15, the Swiss will have to say whether they agree to tighten the screw on streaming platforms by forcing them to reinject part of their profits into national audiovisual production. The Lex Netflix – that’s what the law in question is called – requires platforms to invest 4% of their turnover in Swiss cinema. The government, parliament and almost all parties are in favor of this development. But not the youth sections of right-wing parties. They are the ones who are at the origin of the sling and who launched a referendum to try to block the text, after having gathered more than 70,000 signatures.
On paper, 4% tax doesn’t seem like much. In France, the law requires them to donate 26% of their turnover. In Italy, it is 20%. Nearly half of European countries have implemented a similar system. But 4% is still not nothing for creation and the Swiss economy, explains Françoise Mayor, head of fiction produced at RTS, the Swiss Radio Television: “For the RTS, for the public service, in general, it will change absolutely nothing.
“What will really change is for the public, also the regional, local economy since there will be, we imagine, around 18 million who will be invested in independent Swiss creation.”
Françoise Mayor, Head of Fiction at RTSat franceinfo
A sum that could allow, for example, to produce around three more series made in Switzerland each year. Note that the tax also applies to foreign TV operators who broadcast advertisements dedicated to the Swiss public. This is the case, for example, in French-speaking Switzerland, of TF1 and M6.
We did it! The referendum against #LexNetflix was filed with around 70,000 signatures. Another victory for the Swiss Young Liberal-Radicals. A huge thank you to everyone who contributed to this success.
More freedom. Less state. pic.twitter.com/nGOdOcsXbd— Young Liberal-Radicals Switzerland (@JLR_CH) January 20, 2022
Switzerland should therefore align itself with its neighbours… Unless the arguments of young activists from right-wing parties succeed in imposing themselves. They believe that Swiss cinema already has enough public money. But that’s not their biggest worry, explains Françoise Mayor: “For them, the big fear is that platform subscriptions will increase. However, they are already increasing and we have no control over it. Precisely, when Netflix increased its subscription, it did so in a way completely unilaterally, without warning anyone.”
The argument of the wallet seems in any case to have its effect. Since the supporters of the law, given large winners a few weeks ago, have seen their lead melt away. But nothing is played. Since if it is young people who oppose the Lex Netflix, it is also the young people who abstain the most during the votes.
Netflix regionalizes its offer in the Middle East and creates controversy
In the Middle East, there is no question of a vote or mandatory investments, but Netflix is regionalizing its offer. The platform was launched in 2016 in the region and now has nearly three million subscribers. If you have a Netflix subscription in France, you can use it in the Middle East, but you will come across a catalog of different films. In Lebanon for example, it’s a mixture of French films, Anglo-Saxon films, but also Lebanese or Arab films. And it’s the same for the series.
Netflix has no obligation to invest in local production, but the platform does so to feed its catalog and its subscribers. Example: the distribution of a satirical cartoon produced by a Saudi animation studio. Three series since 2019 with Egypt and Jordan: jinn, Al Rawabi School for Girls and Paranormal. And then finally, Netflix released its first Arabic film: perfect strangers, co-production with Egypt, which has been a hit since its release a few months ago. The feature film caused controversy after being accused of inciting “to homosexuality and betrayal”.
Directly after its release the first Arabic Netflix Film “Perfect Strangers” ( Ashab Wala Aaz) stirs wide controversy. #Egypt #اصحاب_ولا_اعز #اصحاب_ولاأعز pic.twitter.com/ZOD9KS4t4c
— Egypt Today Magazine (@EgyptTodayMag) January 22, 2022
There was pressure in the country to have him removed from the platform but nothing came of it. The Jinn series had also made a fuss, because of the crude language. It’s true that in some countries, censorship would no doubt have prevented these broadcasts in theaters or on TV. Recently, movies Eternal and West Side Story were censored in the region for addressing LGBT issues.
If Netflix is trying to “regionalize” its offer, it’s because competition is tough in the Middle East. The American platform is in the lead, but not far behind, there are the Americans of StarzPlay, based in Dubai, and especially Shahid, which should double Netflix. Shahid is the platform of the Saudi group MBC, a media giant in the region. Shadid offers 40% of content made in the Arab world, when Netflix barely reaches 1 or 2%. But it has something else to offer: a catalog that opens the windows to the outside. Films, series that attack societal or political taboos are good for local audiences. Against all expectations, the Israeli series Fauda, for example, was a hit with Arab viewers, while Israel remains “the historical enemy”.