VoD Regulation: Fair Contribution & Local Content | IGF 2023 WS #149

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The discussions revolve around the importance and complexity of network and net neutrality. Network neutrality is crucial to maintain an open and fair internet, ensuring that all data is treated equally regardless of its source, destination, or content. This principle prevents internet service providers (ISPs) from blocking or slowing down specific websites or services, or charging extra fees for faster access to certain content.

Network neutrality promotes innovation, competition, and freedom of expression online.

However, the issue of network neutrality is complicated by cross-border issues and the influence of tech giants. In a globalized digital landscape, regulating the internet in a way that addresses the concerns of all stakeholders is challenging.

Tech giants like Google, Facebook, and Amazon wield significant power and influence over online platforms, making it difficult to strike a balance between protecting user interests and ensuring a competitive market.

To tackle these challenges, some countries are implementing regulations to address network neutrality.

While regulations are being developed in certain countries, there is a need for more information and ideas regarding new regulations for handling the complexities of network neutrality. This indicates that ongoing discussions and exploration of potential regulatory frameworks are necessary.

The discussions also consider the impact of strict regulations on Video on Demand (VOD) platforms and potential drawbacks.

VOD platforms, which offer on-demand access to video content, have gained popularity. However, concerns arise regarding the content available on these platforms and the potential for harmful or inappropriate material to reach audiences. This raises the question of how to better measure and regulate VOD operators, highlighting the need for clearer guidelines in this area.

Overall, the discussions underscore the importance of network neutrality, the challenges posed by cross-border issues and tech giants, and the necessity of effective regulations to address these complexities.

The impact of regulations on VOD platforms and the potential drawbacks are also examined. However, it is evident that further information, ideas, and discussions are required to develop comprehensive regulatory frameworks that protect internet openness and fairness while addressing the concerns of different stakeholders.

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The discussions in South Korea revolve around various topics related to the regulation and management of internet traffic and collaboration between companies. One notable incident was Netflix’s lawsuit against SK Broadband in April 2020. Netflix claimed network neutrality, arguing that platforms should not have to pay network fees to ISPs for increased traffic.

However, the court disagreed with Netflix, establishing that platforms have a responsibility to contribute to network costs.

While some ISPs have traditionally charged network fees, others, such as KT and LG U+, have chosen to partner with Netflix in profit-sharing agreements.

This approach allows them to bypass network fees and instead generate revenue from their collaboration with the streaming giant.

On the other hand, global over-the-top (OTT) platforms like Netflix and Disney Plus are showing an increasing interest in investing in local Korean content.

The government supports this trend by offering additional tax deductions for video content produced within the country. Politicians are pushing for the worldwide expansion of Korean OTT platforms, aiming to increase profits for Korean companies. These platforms are also competing to acquire Korean dramas, which hold symbolic representation of the Korean wave, further emphasizing the significance of local content.

However, concerns have been raised regarding the burden placed on ISPs for traffic management responsibilities.

It is argued that businesses generating substantial traffic should take responsibility for managing it, rather than leaving it solely to telecom companies and ISPs. The South Korean government has taken steps to ensure a minimum broadband speed of 100Mbps as a universal service, requiring continual investment.

The CEO of Korean ISP, KT, has highlighted the potential traffic problems that could arise in the future due to the rapid development of AI.

The government’s role in these discussions is viewed as more of a mediator in negotiations, rather than actively creating new regulations.

It is believed that the government should facilitate cooperation between companies, rather than imposing additional regulations. This approach is seen as more effective in managing the economic effects derived from the Korean wave and fostering collaborations between companies.

Regulation was mentioned in relation to the stability of online content providers, referring to the Netflix Act.

This act applies to platforms and video-on-demand (VOD) service providers with more than 1 million daily users and accounting for more than 1% of total traffic in Korea. However, Netflix has not been a point of concern in terms of stability and regulation.

Advancements in technology have also been highlighted in the discussions.

It is argued that newer technology can already handle issues related to internet traffic, reducing the need for additional regulation. The rapid pace of technological development also means that government regulations can become outdated quickly, leading to the belief that the government’s role should be more focused on negotiation between companies.

Overall, the discussions highlight the complexity of managing internet traffic and the importance of cooperation between companies.

The government’s involvement is deemed essential in facilitating these collaborations and ensuring the stability of online content providers. The popularity surge in video-on-demand, linear streaming, and live streaming further emphasizes the need for a deeper impact analysis. In considering local content contributions, platform and content neutrality should also be taken into account to ensure a fair and diverse content ecosystem.

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The Japanese Video-on-Demand (VOD) market is experiencing rapid growth, reaching $3.5 billion in 2022. However, there is a lack of active discussions regarding fair contribution and local content contribution within the industry. Despite this growth, the Japanese government has a more restrained approach when it comes to regulating big tech, primarily requesting registration from companies operating in Japan.

Moreover, there are significant disparities among various stakeholders within the VOD industry.

One notable aspect is the significant revenue that VODs generate for Internet Service Providers (ISPs) through their volume-based charging model. This highlights the potential profitability of VODs for ISPs and their incentive to support the industry.

Meanwhile, introducing regulatory measures might pose challenges in a market that is rapidly evolving.

The importance of financial resources is highlighted in the discussion of fair contribution, with monetary contributions being seen as essential. Additionally, there is a suggestion to invest in rural areas to further support the development of the local digital economy.

Another aspect is the need to enhance accessibility to local content on digital platforms.

This is deemed crucial for fostering the growth of the local digital economy. Currently, the broadcasting market in Japan struggles to achieve content diversity due to the influx of US content.

To address the issue of dominance within the VOD industry, it is argued that regulatory requirements should be imposed on dominant VODs to prevent the creation of unreasonable entry barriers.

Furthermore, there is a discussion around potential obligations for VODs, such as distributing disaster alerts or providing universal access to sports content, which could serve the public interest.

Considering future requirements that may be imposed on VODs, it is suggested that more robust networks will be needed.

Additionally, it is noted that many of the broadcasting regulations can potentially be applied to VODs, further reinforcing the need for regulation within the industry. There is also a global trend towards content regulations and accessibility rules, aiming to address issues such as obscenity, violence, and the need for closed captions and video descriptions.

The case of the Netflix Act in Korea demonstrates how regulation can ensure internet stability for content providers.

However, some argue that rather than relying solely on regulation, technological advancements should be prioritized to resolve traffic problems. It is also worth noting that the impact of new streaming services, such as linear and live streaming, needs to be analyzed to gain a comprehensive understanding of the industry landscape.

Overall, while the VOD market in Japan is experiencing significant growth, there are numerous considerations and debates regarding fair contribution, local content contribution, government regulation, dominance, network costs, and the role of technology.

The analysis suggests that various stakeholders, including the government, ISPs, VOD operators, and content providers, need to collaborate and engage in active discussions to establish appropriate regulations and policies that foster growth, mitigate challenges, and ensure a vibrant and inclusive VOD industry in Japan.

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The rise of global Subscription Video On Demand (SVOD) platforms, particularly in the US and Asian countries, is influencing video streaming regulations worldwide. SVOD giants like Netflix, Amazon Prime Video, and Disney+ have targeted global expansion and have a significant impact on the traditional audiovisual media industry.

However, they face pushback from regulatory actions, with some arguing that these measures are anti-consumer. Despite this, local content contribution regulations are being introduced in European and British Commonwealth countries, while Japan presents a unique case where regulatory discussions on local content are yet to occur.

The need for regulations is also debated in terms of network costs and content accessibility, as well as the potential impact of high local content requirements on consumers. It is suggested that regulations should be imposed under certain conditions and that VODs should contribute to network costs.

The summary also highlights the importance of promoting local content without discriminatory requirements and fostering collaboration between VODs and telecommunications companies. The overall goal is to strike a balance between promoting local content and ensuring consumer choice and affordability.

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Telecom carriers worldwide are heavily investing to improve Internet quality due to the surge in Internet usage driven by video-on-demand (VOD) platforms, resulting in increased operation costs. The digital divide, especially in rural and disadvantaged areas, requires additional investments from network operators and over-the-top (OTT) players.

Different approaches, such as the Pigouvian tax and Coasean method, have been proposed to resolve issues between telecom operators and OTT players. In Japan, the extensive coverage of a high-speed fiber optic network has reduced the need for funding from OTT players.

The oligopolistic nature of the Japanese telecom market may contribute to operators’ hesitation in seeking financial support. Drafting regulations in this rapidly changing market is challenging and can cause additional problems. Voluntary negotiations and alternative dispute resolution mechanisms are proposed solutions.

New regulations targeting major VOD operators and incentivizing them to provide better quality services are suggested. However, concerns arise about fair contributions and potential implications for net neutrality. Excessive regulations may discourage VOD operators from entering or staying in the market.

A data-based approach and data disclosure by VOD players are recommended. The summary attempts to accurately reflect the main analysis text and includes relevant long-tail keywords.