With the growth of global streaming platforms like Netflix, Amazon Prime Video and Disney+, we’ve seen a drastic shift in how people consume television, especially as these platforms generally have far fewer local shows than traditional linear television.

Many countries around the world have been looking into ways to try to support their local film industries, and one of the methods being used or suggested is levies on global streaming platforms, to help fund local content.  Other methods include a quota system or tax incentives to encourage global streaming platforms to make more local shows and films.

Just this past week, the Canadian government had to pull back its plan for a streaming levy following a dispute with the United States over its tariffs and today, the UK government has ruled out imposing a 5% levy on streaming services.

Back in April, the  Culture, Media and Sport Committee recommended introducing a streaming levy should be introduced that would be paid into a cultural fund, which would be administered by the British Film Institute (BFI).

However, the government has said that it is taking into account the benefits that the streaming services provide the local filming industry.  

“In line with our objective to support a mixed ecology, we will however continue to engage with major SVoD services, with the independent production sector and with PSBs on how best to ensure mutually beneficial conditions for all parties.”

The government also said that:

“Investment from SVoD services contributes to the success of our domestic sector, from creating jobs to investing in the skills pipeline through training programs,”

Disney+ has been behind many original shows, including “Rivals”, “Renegade Nell”, “Extraordinary”, and “Culprits”, which have helped engage British subscribers. Many of these original shows have also been made available on traditional British platforms, such as ITV. 

Roger’s Take:  Local content is extremely important, and without a legal framework in place to protect it, the global streaming platforms are likely going to reduce how much they make drastically.  This would be devastating for the film industry in the UK, as well as for the country’s culture.  However, a streaming levy would only generally impact subscribers, as the costs would likely just be passed onto consumers, meaning we would have to pay more. 

Ultimately, the television industry is undergoing significant changes, and it needs to adapt to consumers’ evolving needs.  The public broadcasters are also having to adapt, but simply passing the costs onto the global streaming services is unlikely to be the answer. There’s also no doubt that the government will face other political problems, not just with the US administration, but also in how this levy would be perceived by the general public, who would likely view it as another tax on consumers. 

Do you think a streaming levy was the right answer?  Let me know on social media!

Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Roger@WhatsOnDisneyPlus.com Twitter: Twitter.com/RogPalmerUK Facebook: Facebook.com/rogpalmeruk

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