The Conservatives have warned that Labour's decision to bring video streaming services under new regulations could push up the cost of a family film night. Services attracting more than 500,000 average monthly users in the UK will fall under communications regulator Ofcom's regime and must comply with its codes.
The move aims to align streaming services with traditional broadcasters, but a preliminary impact assessment obtained under the Freedom of Information Act suggests costs could range between £43.4 million and £90.8 million over a decade. The assessment acknowledges that "services indicated that any high costs they incur might be passed onto the consumer through higher subscription fees."
Conservative Criticism Over Subscription Costs
Matt Vickers, deputy chairman of the Conservative party, said families would take a hit "for the crime of watching Netflix on a Friday night." The Tories warned: "Every family with a Netflix subscription, a Disney+ account or Amazon Prime now has to pay for a regulation… This is a tax on the family film night, paid through a subscription bill as Labour puts their fingers in their ears to any impact whatsoever."
Mr Vickers denounced the move, claiming Labour had "run out of ideas." Ofcom is anticipated to face costs of £1.5 million in the first year and £1.76 million annually going forward.
Government's Expected Benefits
However, the Government expects there will be "significant benefits to audiences" from the new video-on-demand (VoD) code "governing harmful content such as disinformation or dangerous health advice." Under the accessibility code, people with sight or hearing difficulties "will be able to enjoy a greater range of online viewing," according to the preliminary assessment.
The Government also expects the moves to level the playing field, "enabling UK broadcasters to better compete with VoD services." In February, the Government announced that "mainstream streaming services will need to ensure that at least 80% of their total catalogue is subtitled, 10% is audio-described, and 5% is signed" – a requirement intended to benefit the "estimated 18 million people who are deaf, have hearing loss or tinnitus and 350,000 who are blind or partially sighted." It said the "maximum fine per breach of a rule will be £250,000 or 5% of qualifying revenue."
Official Responses
A spokesperson for the Department for Digital, Culture, Media and Sport said: "The Government has taken a proportionate approach that ensures essential audience protections and accessibility features are available on the most popular video-on-demand services, bringing them in line with UK broadcast regulation."
An Ofcom spokesperson said: "The scope of broadcast and on-demand regulation is a matter for Government and Parliament. We are yet to consult on our approach to fees under the new regime and, more broadly, we always strive to ensure efficiency and value for money."
