Prime Minister Kulbergs to urge film industry to weigh alternatives to streaming platform levy

Latvian Prime Minister Kulbergs will meet film industry representatives at 9:00 on 13 October to discuss the planned streaming platform levy and to urge them to consider a different way of funding Latvian films and series. The matter is pressing because the Saeima, Latvia's parliament, has already backed amendments in the second reading that would oblige international platforms to invest in local content.

The prime minister's proposal

According to Švern, the plan is to assess the economic impact of the platform levy together with industry experts by the end of the year and to prepare a comparable alternative. Kulbergs says Latvian cinema needs predictable funding and that making films in Latvian is a goal he supports, but the government must make sure the chosen solution brings Latvia the greatest possible benefit.

He proposes that the Ministry of Culture and the Ministry of Finance work with the industry on a funding model that can be compared with the expected contribution from platforms. The Ministry of Economics, together with the Investment and Development Agency of Latvia and platform representatives, should examine how to expand distribution of Latvian works, co-productions and the making of international film projects in Latvia.

The prime minister had earlier said that scrapping the levy should be considered. He estimates the revenue would be fairly small, while greater benefit could come from foreign producers' interest in filming in Latvia. Kulbergs noted that during a visit to the United States the President of Latvia met film industry representatives, including from Warner Brothers, who expressed interest in cooperation. He is also weighing whether the benefits outweigh possible risks to relations with strategic partners.

What the amendments provide

Service providers, whether registered in Latvia or in other EU countries but targeting an audience in Latvia, would have to invest at least 3.5% of their previous year's revenue earned in Latvia each year. They could do so by financing Latvian films and series, buying distribution rights or paying into the budget of the National Film Centre (NKC). Providers with low turnover or a narrow audience would be exempt.

The first report, on 2027 revenue, is due by 31 May 2028. If investments in 2027 and 2028 reach at least 300,000 euros, revenue for 2026 and 2027 would not need to be declared.

The Ministry of Culture estimates that foreign platforms could pay about 600,000 euros a year into the NKC budget. NKC head Dita Rietuma has cited a range of 600,000 to one million euros. The ministry says similar rules already exist in 18 EU member states. Film industry representatives disagree with Kulbergs and believe the payment should be introduced.