Germany is set to introduce mandatory investment obligations for streaming platforms and broadcasters, alongside a significant boost in public film funding, aimed at strengthening the country’s audiovisual sector and reinforcing its position as a leading European production hub.

According to the Ministry of Culture, streaming services such as Netflix and Amazon, as well as major TV broadcasters, will be required to reinvest at least 8% of the annual revenue they generate in Germany back into the local film and audiovisual industry. The announcement came on 5 February, just days ahead of the start of the Berlinale (12-22 February), as the German capital prepares to host international industry professionals.

“This is not a symbol, but a real investment stimulus: for jobs, value creation and creative excellence,” Culture Minister Wolfram Weimer said in a statement.

Under the proposed framework, platforms choosing to invest 12% or more of their German revenues would be exempt from certain regulatory obligations, including requirements related to producing content in the German language. The measure is designed to incentivise higher levels of investment while offering greater flexibility in how companies meet their commitments.

The reform comes at a time when German production activity has expanded in response to increased demand from global streamers, but the sector has also faced mounting pressure from rising labour, energy and materials costs over recent years.

With the new measures, Germany - one of Europe’s largest streaming markets - would join at least a dozen other European countries, including France and Italy, that already require international platforms to invest directly in domestic production.

In parallel, the federal government has agreed to increase annual public funding for film production to €250 million, nearly doubling previous levels.

“Now the ball is in the court of the streamers and broadcasters on the one hand, and the producers on the other,” Weimer said.

According to German media reports, the corresponding legislation is expected to be approved by the cabinet before early April. However, it remains unclear what penalties, if any, would be imposed on platforms that fail to comply with the new requirements.