The German government is pushing legislation that would require U.S. streaming platforms, including Netflix, to reinvest a portion of their German revenue into the local industry. The United States has pushed back strongly, calling the measure a non-tariff barrier.
According to Politico Europe and other outlets on Monday, the German federal government has prepared a media services investment mandate law that would require streaming service operators and broadcasters to invest at least 8% of revenue earned in the German market into the European media industry. At least 80% of that investment must go to European content "with German cultural character," and more than 70% must be allocated to independent film productions.
The measure is seen as an effort to harness funds from global platforms to nurture Germany's and Europe's audiovisual content ecosystem. However, companies that pledge to invest more than 12% of revenue would be exempted from the various investment quotas. If the bill passes parliament, it is expected to take effect next year.
According to the German Association of Private Media (VAUNET), pay-TV and streaming service operators generated approximately 5.5 billion euros (about 9.7 trillion won) in revenue in Germany last year.
The United States is pushing back. U.S. Trade Representative Jamieson Greer said in an interview with Bloomberg on Sunday that the German bill runs counter to the trade agreement that the United States and the European Union (EU) signed last year. He criticized Germany for treating American platform companies as "a piggy bank for protectionist projects."
Through the so-called "Turnberry Agreement" signed in July last year, the United States and the EU agreed to cooperate in removing unreasonable barriers to digital trade. The agreement was largely targeted at the EU's Big Tech regulations and digital taxes imposed by some member states on American firms.
The German government, however, counters that the measure is neither a tax nor a trade restriction. Government spokesperson Stefan Kornelius said it is "very moderate by European standards."
Indeed, EU directives allow member states to require platform operators to make financial contributions to European content. Under such rules, France mandates that 20% of local revenue be reinvested in European content production, and Italy requires 16%.
Analysts say the German government is pursuing the policy out of concern over its sluggish domestic film industry. The Netflix original film "All Quiet on the Western Front," which won four Academy Awards including Best International Feature Film in 2023, was a German-language production but was filmed mostly in the Czech Republic.
German Culture Minister Wolfram Weimer pledged to invest more than 300 million euros (about 530 billion won) annually in film production support, saying, "Now it's the industry's turn to create 'Made in Germany' hits."
