If the Right Policies Are Implemented, Emily Might Come to Istanbul
Emily is moving from Paris to Rome. If you’re wondering who Emily is, she’s the American protagonist of Netflix’s Emily in Paris, trying to carve a place for herself in the Parisian advertising world. At the end of the show’s fourth season, it was announced that Emily would be relocating to Rome. French President Emmanuel Macron commented, “How could this happen?” while the Mayor of Rome responded, “We don’t interfere with Netflix’s production decisions.” Let’s look closer: where does the sarcasm in the Mayor’s reply come from?
In France, broadcasters have long been required to invest some of their revenue in locally produced content. Specifically, 20% of their turnover must be allocated to French-language productions. For digital platforms like Netflix, Amazon Prime, and Disney+, this obligation increases to as much as 40%. There are also detailed rules about how much of this investment should go to large production companies versus independent ones. The localization requirements for the production industry in France are so strict and detailed that, in 2019, the French Competition Authority stated, “It is extremely challenging for an industry undergoing rapid change to comply with regulations of unprecedented complexity.”
France’s localization policies serve two primary purposes: protecting national culture from American influence and stimulating the local economy by encouraging domestic production. However, as Nobel laureate economist Jan Tinbergen once said, “Targeting two variables with one policy instrument rarely succeeds.”
How do other countries achieve success? In Spain, the obligation for Spanish-language productions is capped at 15%. However, the production industry is supported through tax incentives, leading to growth rates in the 2010s that were three times higher than in France. Spain’s experience has shown that one tool cannot effectively serve two goals. During General Franco’s regime, English-subtitled films were banned to protect Spanish culture from American influence. This led to a surge in dubbing, so both American and Spanish movies were released in Spanish. Ironically, no one ended up watching Spanish movies.
Another success story comes from Korea. The Korean government established a $470 million fund to invest in productions, resulting in over 30% growth in drama exports in 2022 alone. Yet, two decades ago, the strongest objections to the Korea-U.S. Free Trade Agreement came from producers worried that American dramas would dominate the domestic market.
Localization policies often reduce competition while driving input costs up significantly. Unlike industries like textiles, the labor pool for TV production is not as flexible. Human resources needed for creative roles, such as screenwriters, directors, and actors, cannot simply be produced on demand. In France, two major television networks, TF1 and M6, wanted to merge in 2021, claiming, “We can no longer cope with rising costs!” However, the merger was not approved. For France, it was a case of “going for the rice and losing the bulgur at home.” It’s baffling because a country with such a strong cultural heritage would go to lengths to protect it.
As I wrote last year, one of Turkey’s most remarkable economic achievements in recent years has been its TV and drama production industry. After the U.S. and the U.K., Turkey ranks third in the world for TV series exports. Consider this: only 1–2% of the world speaks Turkish, yet culturally, we deliver stories that resonate with diverse audiences across Latin America, Europe, the Mediterranean, and the Middle East at reasonable quality. You can even find production sets for Turkish series — never aired in Turkey but created solely for export — in remote Anatolian villages.
This success deserves applause. As our manufacturing industry shows signs of decline, it’s worth contemplating how we can replicate similar success stories in other service industries. Unlike the artificially stimulated growth seen in France, the key to our drama industry’s success lies in its organic growth. While state protection is reasonable for nascent industries, our drama industry is like a seasoned marathon runner at the peak of its form.
Turkey’s Ministry of Trade and Culture and Tourism has already led successful initiatives to support TV series exports. However, more is needed when considering our competitors’ financial resources. Without the right fine-tuning, the industry could fall victim to its success. Demand has surged so much over the past few years that, according to producers, production costs have risen by over 250% in dollar terms since 2020. What do you think — could Emily come to Istanbul in the next season?
This article is a translated version of which was “Doğru politikalar uygulanırsa Emily İstanbul’a gelebilir” initially published in Economic Daily (Nasıl Bir Ekonomi Gazetesi) on January 03, 2025.
