Netflix Opposes Germany’s 8% Streaming Reinvestment Bill

Netflix has criticized a new legislative proposal in Germany that would require streaming services to reinvest at least 8% of their local revenue back into domestic and European film and television productions [1]. The company argues that the regulation, recently approved by the cabinet led by Friedrich Merz, will ultimately make it difficult to finance ambitious projects and lead to a reduction in the overall volume of content produced [1][2].

Key takeaways

• The German cabinet approved a bill mandating streaming services reinvest 8% of local revenue, with non-compliance resulting in a fine equal to 75% of the uninvested amount [1][2].
• Netflix Germany executive Wolf Osthaus warned the rules could make large-scale projects economically unviable and reduce the number of productions available to viewers [1][2].
• Industry group Vaunet, representing platforms like Disney+ and Paramount+, described the measure as an "unnecessary and excessive interference" with media freedom [1].
• The German government aims to revitalize its stagnant film industry and plans to double public funding for domestic production to 250 million euros [1].

German Cabinet Approves Mandatory Reinvestment

On May 27, the German cabinet approved legislation requiring streaming companies to invest a minimum of 8% of revenue generated within Germany into the country's film and TV sectors [1][2]. If companies fail to meet this obligation, they would be subject to a penalty amounting to 75% of the funds they did not reinvest [1][2]. The bill also addresses copyright ownership, allowing platforms to hold rights indefinitely provided they gradually return or share them with creators [1]. The legislation still requires passage by parliament