Netflix and several other streaming platforms have criticized a proposed German law that would require digital streaming companies to reinvest a larger portion of their locally generated revenue into European film and television productions.
The proposal, approved by Chancellor Friedrich Merz’s cabinet, would compel platforms such as Netflix, Disney+, and Amazon Prime Video to channel at least eight percent of their earnings in Germany into domestic and European audiovisual projects or face financial penalties.
German authorities say the move is designed to revive the country’s struggling film industry while increasing support for local content creators. The government also announced plans to almost double public funding for film production to €250 million.
Netflix, however, warned that the policy could discourage investment and reduce the number of large-scale productions made in Germany. The company argued that stricter regulations and new rules on intellectual property rights could make ambitious projects financially difficult to sustain.
Industry group Vaunet, which represents several streaming companies and broadcasters, also opposed the proposal, describing it as excessive government interference in the media sector. The organization urged lawmakers to reconsider aspects of the bill before it goes through parliament.
Supporters of the plan, however, believe the new framework could strengthen Germany’s position as a major European production hub and create more opportunities for local filmmakers and studios.
Several European countries, including France and Denmark, already operate similar policies requiring streaming platforms to contribute financially to local content development.