Latvian PM Kulbergs Considers Dropping "Netflix Tax"; Film Industry Puzzled

Latvian Prime Minister Andris Kulbergs (of the AS party) said the country should consider abandoning the planned streaming platform levy, popularly called the "Netflix tax". The mechanism would require foreign streaming services to make payments supporting Latvia's national cinema. His remarks drew criticism from the film industry, and the premier has invited sector representatives to a meeting on 13 October to discuss ways to support film development and an alternative funding model.

The prime minister's arguments

Kulbergs said it must be assessed whether the benefits of such a levy outweigh possible risks to relations with Latvia's strategic partners. He also acknowledged that Latvian film needs predictable funding so that films can be made in Latvian, Latvian stories can be told and audiences beyond the country can be reached. In his words, the government has a duty to ensure that the chosen funding solution brings Latvia the greatest possible benefit.

By the end of this year, the government plans to assess the economic impact of the levy together with industry experts and prepare a comparable alternative for financing Latvian films and series. The Ministry of Culture and the Ministry of Finance are asked to develop, with the sector, a Latvian funding model that can be compared with the expected contribution from streaming platforms. The Ministry of Economics, working with the Investment and Development Agency of Latvia and platform representatives, should examine ways to expand distribution of Latvian works, co-productions and the hosting of international film projects in Latvia.

Industry response

Industry figures stress that the idea took shape over several years and that similar mechanisms already operate in other European countries. Gints Grūbe, head of the production company Mistrus Media, said the work took four years of consultation with European countries and that Kulbergs himself, as head of government, sent it on to the Saeima, the Latvian parliament. Guntis Trekteris, producer and owner of Ego Media, called the statement, made the day after the elections, very strange.

Dita Rietuma, head of the National Film Centre, described abandoning the plan as incomprehensible and said it effectively buries more than four years of work.

The topic is also discussed on Delfi's programme "Spried ar Delfi" with Arta Ģige of the Latvian Film Producers Association and Mārtiņš Brencis, the prime minister's adviser on public administration.