The news: European Union officials are considering making major streaming providers like Netflix and YouTube help pay for 5G and fiber infrastructure, per Bloomberg.
For years, European providers complained about over-regulation, declining revenues, an overcrowded market, and freeloading streaming and tech companies.
Policy shift favors telecoms: The move is part of a “fair share” initiative to make data-heavy businesses like tech and streaming companies help pay for the traffic they generate.
What this means for EU’s telecom operators: Offsetting some of the cost to build and maintain networks can enable cable and network providers to expand more freely and improve reach and quality of service without depleting their budgets.
What this means for streaming providers and tech companies: Video streaming services and apps have grown exponentially over the past three years and are facing increased calls for investment in networks.
Key takeaway: Initiatives to require streaming services to pay to use infrastructure and utilities come at a time of slowing growth for streaming.
The cost of doing business will likely be passed on to customers, which could lead to a drop in subscriptions or even more ad-supported tiers.
Dive deeper: Read our Worldwide Subscription OTT Users Forecast 2023 to get the latest analysis on streaming video services.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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