EU moves to unblock TV streaming services

The European Competition Commissioner, Margrethe Vestager, says that 'geo-blocking' - where broadcasters restrict access to movies and shows according to which country the user is in - goes against the spirit of the single market.

And she says that the European Commission may launch a formal competition inquiry that will include the issue of geo-blocking.

"I, for one, cannot understand why I can watch my favourite Danish channels on my tablet in Copenhagen, a service I paid for, but I can't when I am in Brussels," said Ms Vestager.

Premier League

"Geo-blocking prevents consumers from accessing certain websites on the basis of their residence or credit card details."

Ms Vestager says that the European Commission is poised to launch a wide-ranging competition inquiry into whether such geo-blocking should be allowed to continue in its present form.

If the Commission finds against geo-blocking, it could stop rights holders such as the Premier League from making broadcasters block online viewers in other EU countries.

"Last year, we opened a formal investigation involving major US film studios and large European broadcasters and their licensing contracts. We are examining the clauses in their contracts that prevent existing and new subscribers from accessing satellite and online pay TV when they are outside the area covered by the licence. And we are investigating the alleged geo-blocking of certain video games sold online for personal computers."

At present, the online movie-streaming service Netflix cannot be accessed in many EU countries, even to those who pay a monthly subscription in their country of origin.

Netflix says that this is the case mostly because film and television rights-holders insist on splitting up different countries to try to maximise their own income. The same problem affects local broadcasters such as RTE, whose new international player cannot offer the same shows to European online viewers as to Irish online viewers.

Geo-blocking is an important feature of rights-holders' negotiations with broadcasters such as Sky and Netflix. Stripped of this negotiating ability, rights-holders could find a much smaller number of companies that could afford to bid for Europe-wide rights to movies and programmes at today's valuations.

Q & A: Geo-blocking

What is geo-blocking?

It's when a service can't be accessed online from a particular country or region, usually for copyright reasons. So you can watch 'Eastenders' on RTE's Player if you log on from Ireland, but not from London.

How does it know where you are?

It can tell by looking at the 'IP address' of your internet-connected phone or computer.

Who uses geo-blocking?

Television broadcasters like RTE, the BBC, Sky and Netflix. They do it because the companies who own movie and sports rights, like the Premier League or US television company HBO, require it as part of their contracts.

Is it legal in the EU?

Up to now, yes. But the European Commission believes it goes against the spirit of the single market. And a couple of recent European court cases have set precedents for legally accessing sports matches not 'licensed' for viewing in one EU country but legally broadcast in another.

Is anyone in favour of geo-blocking?

Yes - sports associations, television programme makers and anyone else looking to make money from what people might want to watch. They argue that the extra money lets them invest more into content and activity.

So what happens now?

Two things. The European Commission is set to launch an official probe into geo-blocking as part of an overall investigation it's undertaking into ecommerce competition. Meanwhile, a separate update process on EU copyright law could also have an effect.

Does this mean that Sky might have wasted billions on Premier League rights?

Probably not, as there is unlikely to be any change in law for a couple of years, by which time Sky's football contract will almost be over.

Is geo-blocking foolproof?

No. Netflix admits that a percentage of its customers use free workarounds (called 'virtual private networks') to keep their computer's location from it, thereby allowing access to the US Netflix service, which has newer movies and hit TV shows.