Germany Introduces New Streaming Investment Regulations

With the entertainment business shifting more towards streaming, Governments around the world are slowly starting to work out what is required to help maintain local content, as the global streaming platforms like Netflix and Disney+ become more popular.

One of the ways that some governments are looking to support their local television and film industry is to impose quota systems, and today, the German government has announced it is looking to introduce a new system, where 8% of its German streaming services revenue must be invested in local content.

There is also an added bonus for streaming services like Disney+ to invest even more, as if they invest 12% or more of their German revenue, they will be exempt from a number of other regulations, such as being required to produce films in the German language.

The aim of this new rule is to provide a “basis for a new boom” in local production, providing “reliable, internationally competitive framework conditions”.

The German government is also increasing its funding for local film production to €250 million ($295.2 million) per year, nearly double the previous level.

As you might expect, VAUNET, which represents streaming platforms including Disney+, has slammed the announcement, saying it was “a bitter disappointment for the media industry” that “abandons the possibility of a quick and unbureaucratic solution.”

Disney+ has already been heavily investing in German original content, such as “Call My Agent Berlin”, “Sam – A Saxon”, “The Interpreter of Silence”, “Pauline” and “Farm Rebellion”.

Roger’s Take: For German Disney+ subscribers, this new rule will no doubt result in a steady stream of German-made content hitting Disney+, which will also hopefully be shared globally. With more countries introducing quotas like this to keep local film industries alive, I do believe it’ll mean that Disney+, along with other streaming services, will offer more variety, as just having almost every film and show set in the United States, isn’t ideal for a global audience.

It shouldn’t come as any surprise that Disney, or any other streaming platform, wanted these rules to come into place, as it’s going to cost them more money, and they’d rather have no restrictions in place. Which ultimately, would result in fewer shows and films being made in Germany.

Personally, I prefer the method of a percentage of the country’s revenue from streaming, as that gives Disney and other companies more leeway in how they want to invest, rather than a percentage of content made in that region being available on the platform. We’ve already seen how that system impacts Disney+ in European countries, as they regularly remove hundreds of titles each year to bring the quota down, while also licensing a wide selection of films and shows to bulk out the platform with European-made content.

What do you think of this decision?  Let me know on social media!