The core argument of “it’ll reduce the quality of films” seems to be nonsense. Unless I’m missing a crucial piece of context here. Filmmakers are already heavily incentivized to target the lowest common denominator. Today their film can be licensed to multiple distributors, one or more in each country. So, if they wanted to make as much return as possible, they’re going to target as wide as audience as possible.
What this would do is hurt the local distributors in those countries. Films would be licensed to companies who have a strong presence in all of the affected countries, instead of many distributors that are only prevalent in one. I assume this would lead to Netflix and Amazon getting the largest share.
I’d be interested if people in Europe find the current system to be a significant hassle or not.