The German government aims to attract more filmmakers and establish the country as a "global player" in on-screen entertainment. A new bill would compel media companies to make mandatory investments in the film industry.
"With today's cabinet resolution, we are ensuring that the German film industry will become a global player in film production," Germany's Culture and Media Minister Wolfram Weimer stated on Wednesday.
He described the coalition government's draft bill, which still requires parliamentary approval, as a "film booster."
According to Weimer, never before has such a large sum been allocated to the domestic film industry. In fact, it will be nearly double any previous allocation, totaling β¬250 million ($291 million). Alongside other funding programs, the government is reportedly committing over β¬300 million to film productions. Additional funding from Germany's federal states is expected to supplement this total.
That said, government funding alone will not drive major changes. This is why streaming services like Netflix, Amazon, and Disney would be required under the bill to make investments on par with private and public German broadcasters. With nearly 84 million residents, the German market is the largest in Europe and has proven lucrative for all these companies.
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Streaming services and private broadcasters
The bill would require media companies to invest at least 8% of the revenue they generate from subscriptions and advertising into the German film industry. The German Association of Private Media (VAUNET) anticipates revenue of β¬6.5 billion in 2026. Based on this forecast, streaming services and pay TV broadcasters would have to invest β¬520 million β whether they want to or not.
"Our goal is for more film projects to come to Germany and Europe," said Finance Minister Lars Klingbeil.
"We want European content to be streamed. And we support the work of independent producers," the center-left Social Democratic Party (SPD) politician added.
Weimer: 'Film industry should seize the opportunity'
The German government also hopes that streaming services and broadcasters will voluntarily invest even more and is willing to offer incentives to encourage them. It would waive certain specific legal requirements for film investments of 12% or more.
Exactly which requirements these are has yet to be determined. The purpose of this exemption clause is to secure contracts for the German film industry while avoiding excessive interference with companies' business models.
Weimer considers the entire package "fair and realistic" and believes it should enable the entire film industry to plan years ahead for the first time.
"Now it's up to the industry to seize this opportunity to produce a series of blockbusters 'made in Germany,'" he said.
If the plan passes, traditional studios are likely to benefit the most, such as Studio Babelsberg in Potsdam and Bavaria Film south of Munich.
Sven Lehmann, chairman of the Culture and Media Committee in the German Bundestag, is optimistic that this will reverse recent trends.
"Finally, we're making progress in film policy," said the politician from the environmentalist Green Party.
He added that, given the high revenues of Netflix, Amazon, and other media companies in Germany, one thing is clear: "Those who do good business here must also make a fair contribution to financing Germany as a film production hub."
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However, Lehmann worries that movie theaters might be left empty-handed: "They are an indispensable part of German film culture."
That is why he believes a mandatory quota is needed to ensure that a fair portion of investments also benefits big-screen productions.
Whether his wish comes true will depend on the German parliament. Its members will have the final say and could still influence the government's draft bill.
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According to the proposed timeline, the new film subsidy program would take effect in early 2027. The German Association for Information Technology, Telecommunications and New Media (Bitkom) has expressed concerns about this new approach.
"We share the goal of strengthening Germany as a hub for film and television production," emphasized CEO Bernhard Rohleder.
However, he argued that the proposed bill in its current form would not achieve this goal.
Rohleder believes that imposing requirements on new productions would significantly interfere with editorial and business autonomy. This would lead to content being created not only based on quality and audience interests, but also on regulatory mandates.
"Germany needs more compelling stories, more creative excellence and better conditions for the industry β not more coercion and micromanagement," said Rohleder.
This article was originally written in German.