For IFTA and other producers’ organizations, the concerns relate to the potential to undercut the system of territorial exclusivity that is at the core of independent film financing. That is, distributors in the Member States currently invest in film production through pre-sales, trading the risk of recouping their investment against the exclusive right to exploit the film in their territory. Cross-border availability (whether direct or through a poorly drafted portability regulation) drives sales away from a territory toward the territory of first-availability, thus undercutting the distributor’s ability to develop a distribution plan that is best suited to reach local viewers and recover his investment.
Source: Mike Ryan, Jean Prewitt On Europe’s Digital Single Market Drive | Variety