Kulbergs: Streaming Platform Levy Is Not in the National Interest

Prime Minister Andris Kulbergs (AS) told the news agency LETA that introducing the planned streaming platform levy is not in the state's interest, as it could harm good relations with the United States.

The government itself backed such a levy as recently as this summer. Asked what has changed since then, the prime minister replied that the conclusion came from "direct communication with our partners."

The sum is not worth it, he says

According to Ministry of Culture estimates, once the regulation takes effect, streaming platforms registered abroad would pay roughly 600,000 euros a year into the budget of the National Film Centre. The money would go toward making Latvian films and series.

Kulbergs said this amount is not worth jeopardising ties with allies in the US. He said he is ready to support the film industry from the state budget instead.

The prime minister pointed to Lithuania, which he said is currently in a delicate position in talks on deploying additional US military forces there. In his view, any such small step to which a country reacts carelessly could work against Latvia's national security interests. Kulbergs also stressed that the company Tet has not approached him on the matter.

Progress of the bill

At the end of September, the Saeima's Human Rights and Public Affairs Committee backed amendments for the final reading requiring audiovisual service providers to invest at least 3.5% of their revenue earned in Latvia in producing local audiovisual content each year. The aim is to boost Latvian film and series production and make local content more widely available on streaming platforms.

On Monday, Kulbergs said the government should consider dropping the planned levy and focus more on supporting the development of the film sector. The statement drew bewilderment from the Latvian Film Producers' Association, the Latvian Union of Cinematographers and the Latvian Film Directors' Guild.