Politicians in Denmark have agreed on a new media agreement which means that global streaming services operating in the country will be forced to set aside 6 percent of sales for a so-called “cultural contribution”. The money will go to a pool that is earmarked to create Danish content. Among the streaming giants that are affected are Netflix, Disney + and HBO Max.
– With a cultural contribution of 6 percent, we also ensure future access to Danish-produced film, series and documentaries of high quality, said the Danish Minister of Culture Ane Halsboe-Jørgensen (S) in a statement at the end of last week.
The Danish tax comes from an EU law that was clubbed already in 2018 and has been called the Netflix law. The law, which is being implemented in all EU countries, requires that global streaming services have at least 30 percent European content in their services. The law also opens up the possibility for EU countries to demand that the electricity companies contribute to domestic production, but it is up to each country to decide individually on a possible requirement.
In Sweden, among others, the Film Institute requested a government inquiry into the matter, but the government has not yet appointed one.
In a comment to DN, Minister of Culture Jeanette Gustafsdotter (S) writes that the addition in the EU directive on possible flow charges for global companies is primarily aimed at countries that already have such a charge for domestic companies.
“We do not have such a fee today in Sweden. Had it existed today, it would have had to apply to both foreign and Swedish actors due to the EU’s rules on competitive neutrality “, writes Jeanette Gustafsdotter and continues:
“It is not obvious what a possible future fee could look like and who would be covered in that case. Issues such as this need to be analyzed carefully. The Government Offices is working to review several issues in this area and for an ongoing dialogue with the industry. ”
EU Audiovisual Services Directive
The EU directive on audiovisual services contains common rules for the television industry, including a ban on advertising aimed at children.
The latest version of the Directive, from 2018, also captures streaming services, including binding quotas for European content.
The directive requires at least 30% European content. There have been demands for European content on television since 1989, even though EU rules were previously more vague.
The directive also provides EU countries the opportunity to demand that streaming services contribute to national television and film production.
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