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Netflix and Streamers Blast Germany's Protectionist Film Subsidy Plan

Financial Times Companies •
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Netflix and other streaming giants are pushing back against German proposals to force higher reinvestment in European content, calling the plan protectionist. Berlin wants to nearly double film subsidies to €250mn while requiring platforms to reinvest 8-12% of sales in European projects, up from the current 1.8-2.5%.

The draft legislation, set for cabinet review this week, would place Germany in the European middle ground on reinvestment requirements. France demands 20% reinvestment, while Spain and Denmark require 5%. Netflix's Wolf Osthaus warned that mandating reinvestment could actually reduce overall production and hurt audiences.

Netflix emphasized it already invested €500mn across 80 titles in Germany, Austria and Switzerland between 2021 and 2024. The broader industry context shows German production lagging Europe's 15.2% growth rate, managing only 1.4% expansion since the pandemic.

Broadcasting union Vaunet, representing Disney+ and Warner Bros Discovery alongside German players, opposes the measure. However, Babelsberg studio chief Jörg Bachmaier welcomed the bill as a "strong signal" that has already attracted three major streaming productions to Germany.