BERLIN, Feb 5 (Reuters) - Germany will introduce investment requirements for streaming platforms and TV broadcasters and nearly double government funding for the domestic film industry to boost its appeal as a film-making hub, the culture ministry said on Thursday.
"This is not a symbol, but a real investment stimulus: for jobs, value creation, and creative excellence," Culture Minister Wolfram Weimer said in a statement, a week before the German capital welcomes industry players for the Berlin Film Festival.
Streaming services such as Netflix NFLX.O and Amazon AMZN.O, as well as major broadcasters, will be obliged to reinvest at least 8% of the annual revenue they earn in Germany back into the local industry.
However, the measures state that if the streamers and broadcasters opt to invest 12% or more, they will be exempt from complex regulations obliging them to, for example, produce films in the German language.
While German production has enjoyed a surge thanks to demand from streaming platforms, the sector has also struggled in recent years with rising labour, energy and materials costs.
With the measures, Germany, one of Europe's largest streaming markets, will join at least a dozen other European countries including France and Italy that now obligate streamers to invest in domestic production.
In addition, the government has agreed to increase funding for film production to 250 million euros ($295.2 million) a year, nearly double the previous level.
"Now the ball is in the court of the streamers and broadcasters on the one hand, and the producers on the other," said Weimer.
According to German media, a corresponding law is expected to be approved by the cabinet before early April. It is not yet clear what, if any, penalties might be levied on streamers if they do not comply with the proposed regulations.
($1 = 0.8470 euros)
(Reporting by Miranda Murray; Editing by Jan Harvey)
((Miranda.Murray@thomsonreuters.com;))
Comments