Negative impact on social welfare and consumer choice.

Studies conducted by Charles River Associates, Oxera, and Analysis Mason conclude that policy changes to limit rightsholders’ ability to licence content on a territory-by-territory basis could negatively affect social welfare and would decrease, rather than increase, consumer choice.

In the long run, we would see the European audiovisual industry experiencing a reduction in production, and a negative effect on cultural diversity. Consumers would have to pay more as prices would align with the spending power of the more affluent consumer markets in the EU (GDP per capita in PPS varies widely across the EU (Eurostat).