Domestic Film Industry Demands Streaming Levy

The battle for the future of the domestic film industry has been raging for months - after all, the government announced a halt to the disbursement of the ÖFI+ film funding due to budgetary concerns. In the debate on the way forward, the film industry on Thursday rallied with star power for the obligations of international streamers - with the results of a new study on the industry and an open letter.

Investment Obligations Should Come

With this, they aim to support the government, especially in the debate on the planned introduction of investment obligations for streamers, meaning a mandatory contribution from international companies following the French model. "We have a crisis in the Austrian film industry," noted industry association chairman Alexander Dumreicher-Ivanceanu, referring to the reduced funding and praised the investment obligations as a solution: "There would be a solution for the situation."

Currently, the industry is somehow staying afloat, although half of the projects are at risk, emphasized Dumreicher-Ivanceanu. Therefore, the government must act now to at least introduce the levy for streamers in the second half of the year: "It costs the finance minister and the republic nothing." Because if nothing happens, a massive crisis in the industry is expected by 2026.

Open Letter from the Film Industry

Therefore, an open letter was published on Thursday, in which the who's who of the film scene advocates for the involvement of international streaming companies: "With an investment obligation, a balance is created for the fact that international media service providers (e.g., streamers like Netflix, Amazon, Apple, etc.) generate very high revenues through subscriptions and advertising, but contribute only minimally to European film/TV/music culture creation." 40 million euros could be generated annually through a levy, triggering 90 million euros per year in local investments.

"If streamers are required to invest in Austria, it not only means that our poor film industry has larger funds available, but it is also an important cultural policy measure," Oscar winner Stefan Ruzowitzky advocated for bringing the major content distributors on board. "Companies go where they have location advantages," reported Verena Altenberger, co-president of the Academy of Austrian Film, about her recent shoot of a German-Austrian series, where the Hofburg was recreated in Latvia. "Film is the most accessible of all cultural assets," the actress argued for "more love and support" for the industry.

Actress colleague Valerie Huber struck the same chord, pointing out that streaming providers were extracting value in Austria without contributing to it: "We must secure Austrian film, this jewel."

Study to Underpin the Importance of the Industry

This line of argument is also supported by a new study titled "Cultural, Economic, and Social Value Creation of the Austrian Film Industry" by the European Center for Social Finance. In the study of various aspects of the film industry, particular emphasis is placed on factors beyond the economy.

Based on the examination of 223 productions, a remarkable breadth of content is evident in projects funded by ÖFI+ or FISAplus, whereas streaming productions are more internationally oriented. Another aspect is gender equality, with the proportion of women in crews being 23 percent across Europe, but 44 percent in Austria. In acting ensembles, Austria is even further above the European average with 49 percent. Of course, the audiovisual industry also fuels tourism, with "Bergdoktor" alone bringing 800,000 overnight stays to the Alps.

(APA/Red)

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