German government to impose new reinvestment quotas on streamers, broadcasters

The German government will introduce new streaming quota legislation requiring platforms to reinvest at least 8% of the income they earn in Germany to support local TV and film production, reports suggest.

Wolfram Weimer

According to Reuters, politicians are bringing in the new measures to boost Germany’s appeal as an international content production hub.

The quotas will mirror similar schemes in countries such as Italy and France, with the latter requiring streamers to reinvest at least 20% of their revenue locally to help finance original francophone content.

Germany’s proposed measures not only target US-based VoD platforms such as Netflix and Prime Video, but also local broadcasters. That is due to criticism of some domestic TV channels opting to cut costs by moving production to cheaper locations in eastern Europe.

Another clause states that if streamers and broadcasters choose to invest 12% or more, they will be exempt from regulations requiring them to, for example, produce films in the German language.

In addition to the quota plans, the government will increase funding for film production to €250m (US$294m) a year, almost doubling the previous amount.

The measures are expected to be approved by the cabinet before April, though there are no indications yet as to what punishments streamers will face should they not comply with the regulations.

German culture minister Wolfram Weimer said: “Now the ball is in the court of the streamers and broadcasters on the one hand, and the producers on the other. This is not a symbol, but a real investment stimulus: for jobs, value creation and creative excellence.”