Streaming Giants Face Enhanced UK Regulation Under New Media Act
In a significant shift for the media landscape, streaming services including Netflix, Disney+, and Amazon Prime Video will now be subject to "enhanced regulation" by the UK media regulator, Ofcom. This move places these digital platforms under the same level of scrutiny traditionally reserved for broadcasters like the BBC and ITV.
New Regulatory Framework for Video-on-Demand Services
The new regulatory regime, established as part of the Media Act 2024, will apply to video-on-demand services with more than 500,000 UK viewers. This includes not only the major streaming platforms but also public service broadcaster video-on-demand services such as ITVX and Channel 4.
Under these regulations, platforms must adhere to strict rules regarding accurate and impartial news coverage, as well as protections for audiences against harmful and offensive material. Ofcom will have the authority to accept and investigate viewer complaints about content on streaming services.
Substantial Penalties for Regulatory Breaches
For any breaches of the new regulations, Ofcom will have the power to impose substantial financial penalties. These can reach up to £250,000 per violation, or alternatively, 5% of the revenue generated by the service in the UK market.
This represents a major change from the previous regulatory environment where streaming services operated under different standards than traditional broadcast channels. Notably, Netflix has not been regulated in the UK until now, as its European headquarters in Amsterdam placed it under Dutch jurisdiction.
Addressing Changing Viewing Habits
Culture Secretary Lisa Nandy emphasized the necessity of these changes, stating: "We know that the way audiences watch TV has fundamentally changed. Millions now choose to watch content on video-on-demand platforms alongside or, in the case of many young people, instead of traditional TV."
The government's data supports this observation, revealing that two-thirds of UK households subscribe to at least one of the three major streaming services. Furthermore, 85% of people use an on-demand service each month, compared with just 67% who watch live television.
Creating a Level Playing Field
Nandy further explained the rationale behind the regulatory changes: "By bringing the most popular video-on-demand services under enhanced regulation by Ofcom, we are strengthening protections for audiences, creating a level playing field for industry and supporting our vibrant media sector."
This regulatory alignment comes as viewing patterns continue to evolve rapidly, with streaming services capturing an increasingly dominant share of audience attention and engagement across all demographic groups.
