Switzerland has passed the so-called 'Netflix Act' through a referendum that requires online streaming service companies to invest 4% of their domestic sales in the domestic video industry.
Foreign media such as Reuters and Swiss Info reported on the 16th local time that the bill was passed with the support of 58% of voters in a referendum held on the 15th local time.
The 'Netflix Act' is a bill that requires global OTT (Netflix, Disney Plus, etc.) companies to 'invest' 4% of their sales in Switzerland in domestic video production.
Here, 'investment' can be made in a way that OTT companies directly invest in content production, purchase videos made in Switzerland, or participate in an investment fund.
The bill also stipulated that 30% of content provided by OTT companies consist of content originating in Europe, including Switzerland.
In response to the passage of the bill, Netflix said, "We will respect the results of the referendum and cooperate with the government to enforce the regulations."
"I think good stories can be made anywhere," said a Netflix spokesperson. "We have invested in Swiss content in the past."
Swiss authorities estimate that 18 million Swiss francs (about 23 billion won) will be invested in the Swiss video industry a year when the law is implemented.
This is the local government's annual direct support for the film industry 3,
Meanwhile, other European countries are also introducing a method of investing the sales of global OTT companies in their own content industry.
Portugal legalized that 1% of OTT companies' sales should be invested in their own film and audiovisual associations, while Italy and France also stipulate that a portion of global OTT companies' profits be invested in local content.
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