That's why government-provided srvices (for example, BBC) are different to subscription services. Government services are, supposedly, paid for by all and required to provide a broad-based content with something for evverybody. Hence, Beeb4 educational stuff (wildlife, Horizon, etc), through go reality shows, Strictly, and on to Eastenders.
There,
IMHO, government is quite right to include, for example, local/regional news, and local radio.
But subscription services are a deal between content-provider and subscriber. For instance, if Netflix costs £x/month, and provides me (a generic me, the potential user, not me personally) with content that I value higher than £x/month (and assuming I can afford it).
But .... anything that
either increases the service cost-base, or increases cost to me, threatens that.
For instance, I might subscribe at £10/month, but not at £20/month. Somewhere in-between is my breaking point. Put my costs up beyond that, and I cancel and the service not only doesn't get my increase, but they lose the £10 they previously had.
A similar logic works for increasing costs .... such as by being forced to provide content the company doesn't want to offer, and I don't want to receive.
An example. Years ago, in the days of analogue satellite, I (me, personally this time) had Sky and added on the optional movie channels. Then, the introduced Premium movies, more or less pay-per-view. and I noticed immediately that the quality of movie content of the standard movie channel dropped immediately, and stuff I previously would have got suddenly disappeared onto pay-to-watch.
So, my subscription cost stayed the same but the contrnt I was paying for dropped. All of a sudden, my £x/month bought me less of what I wanted and the deal was not worth it, I cancelled Sky entirely.
In a commercial organisation, it
should be market forces that rule. If the service cost goes up, I'll probably pay it. But if it goes up too far, I leave. It's for the company to determine what content to provide, and what price point maximises profit. It may be that raising prices makes more profit, even
after those, like me, not prepared to pay it, have left. Fair enough.
If the company start bundling losts of things I don't want, and my benefit/cost calculation suffers, I'm off.
Suppose you subscribe to a SciFy service. Do you want wildlife programs or period drama/romance films? Probably not.
This EU levy interferes with the ability if a company to provide what it considers users want, and at what price. Netflix is a commercial operation, not a social services department doing "good works". Dumping either content demands or price/cost rises on them in state interference.