Kulbergs: Dispute With Film Industry Is a Misunderstanding, €600,000 Will Be Found

A balance must be struck between the interests of Latvia's film industry and cooperation with the United States on the streaming levy, President Edgars Rinkēvičs stressed on Wednesday after meeting Prime Minister Andris Kulbergs (AS) at Riga Castle.

The President's View

Rinkēvičs said he understands the sector's concerns over the levy not being introduced and the search for alternative solutions. Work on the relevant bill will continue in the Saeima, and the film industry's interests and funding must be weighed against ties with the US. Implementing European Union requirements is also important, he said. The president described his recent visit to the US as successful, citing the attraction of film companies and the promotion of economic cooperation. In his view, a solution can be found that satisfies the industry while preserving good relations with strategic partners, though it will take some time and possibly extra work.

The Prime Minister's Statements

Kulbergs said that damaging relations with strategic partner the US is not worth it over €600,000. If the issue is especially important to the partner, the money will be found and provided to the film sector, so that economic opportunities are not lost. The premier said he personally likes Latvian national films and supports domestic cinema, and that this has not changed. In his assessment, the industry's reaction is a misunderstanding, as he is not acting against the sector.

Kulbergs also pointed to a meeting between the president and Latvia's ambassador to the US with representatives of 300 leading companies. He argued that if Latvia wants an ally to support its security and station troops here, it should not quarrel over the levy when cooperation brings far greater benefits. He promised to resolve the matter together with the film industry.

The Regulation at Stake

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 Latvian revenue in local audiovisual content each year. The aim is to boost Latvian film and series production and widen the availability of local content on streaming platforms.

On Monday, Kulbergs said the government should consider dropping the planned streaming platform tax and focus instead on supporting film industry development. The Latvian Film Producers Association, the Latvian Union of Cinematographers and the Latvian Film Directors Guild voiced bewilderment at the statement.