Streaming Giants Respond to Proposed U.K. Levy
On Thursday, major streaming platforms expressed their opposition to a proposed 5% surcharge on subscriber revenue aimed at foreign services, including Netflix, Amazon Prime Video, Apple TV+, and Disney+. This levy is intended to fund British drama production, but industry leaders argue it could have negative implications for audiences and content quality.
Concerns Over Fairness and Competitiveness
A representative from Netflix underscored the potential unfairness of the levy, stating: “Our subscribers have already contributed to the BBC license fee. Instituting this additional charge represents a double taxation, penalizing both them and us. It is a hindrance to success, and our members will ultimately feel the repercussions.”
The Association for Commercial Broadcasters and On-Demand Services (COBA) echoed these concerns. Executive Director Adam Minns noted that a levy in the current economic climate could stifle investment in British productions. “This levy threatens to negatively affect budgets for U.K. content, job creation, and growth in the industry. Ironically, it may weaken the financial backing for dramas produced by public service broadcasters,” he stated.
Parliament’s Inquiry Findings
The urgency for a robust strategy to support original British content was highlighted in a report from the Culture, Media and Sport Committee of the U.K. House of Commons. Following a series of hearings, the committee urged the government, led by Labour Party and Prime Minister Keir Starmer, to enhance support for film and high-end television. Their recommendations include boosted tax incentives aimed at fostering independent films, aiding independent cinemas, and establishing the streaming tax.
A Call for Investing in British Culture
The committee’s final report urged streaming services to increase their financial contributions to British content creators. It proposed that platforms like Netflix, Amazon, Apple TV+, and Disney+ contribute 5% of their U.K. subscriber revenue to a cultural fund designated to support drama productions that resonate with British audiences. They emphasized that if the industry does not voluntarily create this fund, managed by the British Film Institute (BFI), the government should consider implementing a statutory levy within a year.
As the debate continues, the balance between supporting local production and maintaining a competitive landscape for streaming platforms remains a critical issue for the future of the British entertainment industry.