Kulbergs to meet film industry to discuss alternatives to streaming levy

Latvian Prime Minister Andris Kulbergs (United List) has invited film industry representatives to a meeting at 9:00 on Tuesday, 13 October, to discuss ways of supporting the sector's development. The talks are to cover the planned levy on streaming platforms such as Netflix and to encourage the industry to consider an alternative way of financing Latvian film. The prime minister's communications adviser, Elīna Šverna, announced the meeting.

The levy would require streaming services to invest in Latvian audiovisual content, so the issue directly affects the sector's funding.

What the government plans

According to Šverna, by the end of the year the government intends to assess the economic impact of the levy together with industry experts and prepare a comparable alternative for financing Latvian films and series. Kulbergs proposes that the Ministry of Culture and the Ministry of Finance work with the industry on a funding solution that could be compared with the expected contribution from platforms. The Ministry of Economics, together with the Investment and Development Agency of Latvia and platform representatives, is to examine how to expand distribution of Latvian works, co-productions and the hosting of international film projects in Latvia.

The prime minister said Latvian cinema needs predictable funding and that he supports the aim of making films in Latvian. At the same time, he said, the government must ensure the chosen solution brings the greatest benefit to Latvia.

Earlier position and industry objections

Kulbergs has previously said the option of dropping the levy should be considered, since its revenue would be relatively small, and that risks in relations with strategic partners must be weighed. He cited foreign producers' interest in filming in Latvia, including interest from Warner Brothers. Film industry representatives disagree and argue the new payment should be introduced.

The bill

The Saeima, Latvia's parliament, has backed the amendments in the second reading. Service providers would have to invest at least 3.5% of their previous-year revenue earned in Latvia, by financing films, buying distribution rights or paying into the budget of the National Film Centre. The Ministry of Culture estimates foreign platforms could contribute about 600,000 euros a year. Similar rules already exist in 18 EU member states.