Germany Enacts Law Mandating Streaming Services to Invest in Local Film Production

Germany's government, in collaboration with the CDU/CSU and SPD factions, has finalized a legal obligation requiring streaming services and broadcasters to invest 8% of their annual net revenue from Germany into local film and series production. This law aims to bolster the German film industry, ensuring sustained job security while fostering cultural diversity, explained Culture State Minister Wolfram Weimer. The mandated investment must allocate 80% of funds to German-language films, with quotas ensuring 70% go to independent producers and 60% to European productions. Companies investing more than 12% of their revenue can negotiate individual agreements with production companies, providing flexibility beyond the default legal framework. Finance Minister Lars Klingbeil emphasized that the deal offers planning certainty for increased investment in both national and international content. Annual funding for economic film support in Germany will rise to 250 million euros, releasing 120 million euros in contingent funding previously held back pending the investment obligation's approval. The Production Alliance welcomed this compromise for unlocking planned funds but the Private Media Association Vaunet criticized the rule as outdated and disproportionate. Additionally, the law grants producers the right to reclaim film rights gradually, a shift from previous arrangements where platforms like Netflix held full rights. However, concerns remain about possible retaliatory tariffs from the U.S., following warnings from the German embassy in Washington amid heightened political tensions. The legislation marks a significant milestone for Germany's cultural policy, while remaining less stringent than France's 20% or Italy's 15% streaming obligations.