Latvian Government Approves Requirement for Streaming Platforms to Invest in Local Cinema
The Latvian government on Tuesday supported amendments requiring international streaming platforms to invest a portion of their revenue earned in Latvia into local audiovisual content. The final decision still needs approval from the Saeima.
On Tuesday, December 10, 2024, the Latvian Cabinet of Ministers endorsed amendments to the Electronic Mass Media Law and the Film Law, introducing new obligations for streaming platforms. According to the proposal by the Ministry of Culture (MoC), providers of on-demand audiovisual services targeting Latvian audiences will be required to invest in the production of European audiovisual works created in Latvia.
The requirements will apply both to providers registered in Latvia and to those registered in other European Union (EU) member states that target Latvian viewers. The MoC notes that the use of international streaming platforms has significantly increased in recent years, yet their offerings contain little Latvian-produced content, and so far, these platforms have not invested in Latvian films and series.
The plan mandates that platforms invest at least 3.5% of their annual revenue generated in Latvia from the previous year. Investments can be made by financing the production of Latvian films and series, purchasing distribution rights, or making contributions to the budget of the National Film Centre (NFC). However, providers with low turnover or a narrow audience will be exempt from these requirements.
Currently, 26 Latvian-registered electronic media providers operate in the country, including Tet and Latvijas Mobilais telefons. Additionally, approximately 80 providers registered in other EU countries, such as Netflix, Go3, Apple TV+, Google, Prime Video, Disney, and others, are active in the Latvian market. The MoC points out that similar regulations have already been implemented in 18 EU member states. According to the ministry's estimates, after the changes take effect, foreign platforms could contribute around 600,000 euros annually to the NFC budget, which would be allocated to Latvian film and series production.
The aim of the amendments is to promote the creation of high-quality audiovisual content in the Latvian language and ensure its wider availability to viewers. The final decision on the changes still needs to be made by the Saeima.
