Streaming giants to invest 8% of revenue in German film under new law

Major streaming platforms including Netflix, Amazon and Disney+ will be required to invest at least 8% of their annual revenue generated in Germany into the country’s film industry under a draft law approved by the Cabinet on Wednesday.

The German film industry has been struggling for years. While homegrown stars like Sandra Hüller and Daniel Brühl have put the country back on the map, many award-winning productions are filmed abroad, including the 2022 adaptation of "All Quiet on the Western Front," which won the Oscar for Best International Feature.

The government hopes the legislation — which still requires parliamentary approval before it is expected to take effect in early 2027 — will channel hundreds of millions of euros in new investment from streaming services and broadcasters, which will also fall under the requirement.

“With today’s cabinet decision, we are taking German cinema to a new level in the global competition among film locations," Wolfram Weimer, Germany’s culture commissioner, said in Berlin.

 "Now it's up to the industry to seize this opportunity to produce a steady stream of blockbuster films 'Made in Germany.’"

Revenue from pay-TV and streaming services in Germany reached around €5.5 billion ($6.4 billion) by 2024, according to the industry association VAUNET. 

The advertising market for TV, video streaming and audio media could reach €6.5 billion by 2026, VAUNET projects.

Under the new law, national broadcasters would also be required to invest in the German film industry, including the country's public broadcasters.

The government is also hoping to incentivize companies to spend even more money, with those investing at least 12% to be granted exemptions from certain parts of the law, according to Weimer.

Meanwhile, the government has also increased subsidies for the film industry from €250 million last year to over €300 million, which Weimer said would be available immediately.

The draft law agreed on Wednesday was preceded by lengthy negotiations within the coalition. Weimer, an independent, had at times been pushing for a voluntary agreement with streaming companies and broadcasters.

The Social Democrats (SPD), the junior partner in the conservative-led alliance, had insisted on the legal requirement and prevailed - though the 8% quota agreed remains below what they initially demanded.

SPD co-leader Lars Kingbeil, who also serves as deputy chancellor and finance minister, welcomed the deal.

“Anyone who does good business in the German and European film markets must also contribute here," he said.

Kingbeil said the new rules are intended to strengthen the film industry and its diversity.

"Our goal is to bring more orders to Germany and Europe. We want European content to be streamed. And we support the work of independent producers.”