Industry groups welcome proposed ‘Netflix levy’ on streaming services

The Irish television and film production industry has welcomed proposals to make streaming services, such as Netflix, pay a levy to fund more independent productions in Ireland.

The Oireachtas media and culture committee recommended a levy be placed on subscription streaming providers, to raise money to fund more Irish productions.

The committee was examining draft laws to reform the regulation of online and broadcast media. The Online Safety and Media Regulation Bill is likely to be brought forward by Minister for Arts Catherine Martin in the coming weeks.

Element Pictures, who produced the television adaptation of Sally Rooney's hugely popular novel Normal People, welcomed the proposal for a levy on streaming services.

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The suggested levy, on services such as Netflix and Amazon Prime, "reflects the changing television landscape internationally," a spokesman said.

The on-demand streaming platforms “benefit greatly from the Irish market and it is only right that they pay their fair share to contribute to investment in new original content from Ireland,” he said.

Susan Kirby, chief executive of industry group Screen Producers Ireland, said the committee's backing of the levy showed "strong, cross-party support today for the Irish independent production sector".

Ms Kirby further welcomed the fact funds raised by such a levy were recommended to “only be accessed by the Irish independent production sector”.

“This levy, which would be no extra cost to the Exchequer, has been identified by Indecon that it could raise a minimum of €23 million in additional funding for the creation of original Irish content,” she said.

The industry group would now focus on lobbying for “the introduction of the content levy without delay,” she said.

In a submission to the Oireachtas committee, Netflix had warned against recommending a levy on streaming providers.

The company argued that in its experience it had “not found levies to be the most effective way” to improve the independent production sector.

Netflix said such a policy would be “inflexible” and place “constraints” on creative freedom.

The streaming giant said “the artificial stimulation” of producing more local content would not necessarily lead to “increased consumption of that local content.”

Instead the company proposed placing “an investment obligation on services”, given it was “flexible and proportionate”.