New law will oblige Netflix, Amazon etc. to invest in German film

The German government has announced a new law which will require streaming platforms to invest a percentage of their revenue in local productions.

Germany gov’t plans new law for streaming sites

According to the new law, streaming platforms such as Netflix, Amazon and Disney+ will be obliged to invest 8 percent of their revenue after tax into films and TV programmes produced in the federal republic. The law will also apply to German broadcasters.

These investments will need to meet strict requirements. For example, a percentage of the productions will have to be German-language films or programmes. If streaming companies voluntarily invest more than 12 percent of their revenue into local productions, some of these requirements will be relaxed and they can make individual agreements with German production companies.

The CDU/CSU-SPD coalition hopes the law will mean more films and TV programmes are produced in Germany, instead of streaming site production teams opting to shoot at cheaper locations, such as in eastern European countries.

Culture Minister Wolfram Weimer (independent) said the law would create secure jobs in the film industry “without interfering with the business models of streamers and broadcasters”. Weimer also announced that government funding for film production will increase to 250 million euros per year. 

Finance Minister Lars Klingbeil (SPD) said the decision meant “Planning security for more investment in national and international productions” and sent a “clear signal” on Germany’s position. The German parliament must approve the law before it can take effect.

Germany follows in France’s footsteps

Similar laws already exist in other European countries. Since 2021, the French government has required streaming platforms to invest at least 20 to 25 percent of their revenue into French or European productions.

The law was introduced in France as part of the European Union’s Audiovisual Media Services Directive (AVMSD), which extended certain audiovisual rules to streaming platforms, intending to strengthen the promotion of European content and reinforce the independence of national regulatory authorities.

According to a 2024 report from France’s National Cinema Centre (CMC) and the audiovisual authority ARCOM, international streaming platforms invested over 974,6 million euros in French film and TV shows between 2021 and 2023.

Netflix invested in the highest number of French productions, a total of 66, followed by Amazon Prime Video (53 productions) and Disney+ (36 productions).