This joint report, by consultancies Oxera and O&O, demonstrates that although the Commission’s proposals are intended to increase the availability of content across Europe, it is likely that they would result in significant adverse short-term impacts (up to €9.3bn welfare loss per annum), and that the medium- to long-term consumer outcomes would be worse than they are today (up to €4.5bn welfare loss per annum). In particular, consumers would be worse off through a combination of two main effects:
As well as the adverse impact on consumer welfare, changes to content production would be likely to reduce cultural diversity in the AV sector across Europe as a result of a weakening in the financial position of many local producers, publishers, distributors and platforms.