Streamer Levy to Help Fund British Drama Among “Urgent” U.K. Parliamentary Committee Proposals

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The Culture, Media and Sport Committee of the United Kingdom’s Parliament has determined that immediate action is necessary to safeguard unique British content, following their investigation through several hearings.

In their late-night report released on Thursday, they recommend that the government led by Labour Party head and Prime Minister Keir Starmer significantly boost aid for film and premium TV sectors. Their suggestions include offering more tax breaks for independent films, providing assistance to independently owned cinemas, and a 5% levy on U.K. subscriber earnings from foreign streaming services such as Netflix, Amazon, Apple, and Disney, which would contribute towards funding British drama production.

Regarding the issue of “the high-end television crisis at home,” the committee proposes boosting “tax incentives” to provide the same backing as for independent films. They recommend that the British Film Institute (BFI) conduct an immediate study on the possible structure and investment yield of a policy aimed at productions with hourly budgets between £1 million and £3 million ($1.28 million – $3.83 million). In simpler terms, they want the BFI to quickly explore the potential benefits of offering tax incentives for television shows within this budget range.

It proposes that streaming services like Netflix, Amazon, Apple TV+, and Disney+ – who profit from British creative works – should demonstrate their commitment by contributing 5% of their UK subscriber earnings to a cultural fund specifically intended for financing dramas appealing to British viewers. If the industry fails to establish such a fund within a year, the government is advised to impose a mandatory levy instead, which would be managed by the BFI.

As a dedicated fan, I’ve come to realize that the relationship between independent content creators and streaming platforms isn’t sustainable as it stands. It’s worrying to see thriving production houses being eroded by deals that restrict their capacity to maximize profits from their creative intellectual property. I believe it’s high time for our government to explore strategies that would allow British producers to keep a larger portion of IP rights when collaborating with streaming giants.

Although appreciating the government’s aim to establish the U.K. as a top destination for film and premium TV production, the culture committee emphasizes the need to avoid complacency about its standing as a global production center. They suggest that tax incentives should be frequently evaluated to ensure continued foreign investment in this sector.

Caroline Dinenage, who heads the culture committee in the House of Commons, stated: “British blockbusters with huge box-office success have highlighted our exceptional film and top-tier television industry more effectively than ever. However, the surge in foreign investment over the past few years could push aside numerous gifted independent British filmmakers. While streaming platforms like Netflix and Amazon have positively impacted the industry and economy, if the government doesn’t act quickly to even out the situation, for every movie like Adolescence contributing to national dialogue, there will be countless unique British tales that never see the light of day on our screens.

She stated: “Our film and premium TV industry, spanning from individual production to cinema screenings, along with its gifted creators who make it thrive, are facing challenging times. Ignoring any single aspect could jeopardize the entire system. Consequently, it’s crucial for the government to take more aggressive steps in providing support to this vital sector that significantly contributes to our economy and our influence abroad.

In an effort to prevent the ongoing decrease in locally produced culturally unique British movies and shows, a report’s summary indicates that last year’s Independent Film Tax Credit was merely a starting point. The government should take additional steps, as producers will persistently face challenges in creating and financing films if they don’t, and the resulting productions may not reach audiences. The committee recommends introducing a tax credit to aid in the distribution of lower-budget movies, along with other initiatives to bolster independent film production.

The committee proposes a new tax break specifically designed for “reducing taxes on the promotional and advertising expenses related to movies, aimed at boosting their distribution and screening.

The committee issues a caution that if immediate action isn’t taken, the challenges faced by independent films could spread to the local premium TV industry. This is because intense competition from expensive foreign productions is causing costs to rise, revenue models are shifting due to the deals provided by streaming platforms, and the budgets of public service broadcasters are under pressure as a result of decreasing license fees and falling advertising income.

The report from the committee recommends backing for local cinemas as well. It suggests that the British government implement a funding system to sustain culturally important independent movie theaters, which can help alleviate the financial strains, shifts in audience preferences, and lack of investment in human resources and infrastructure that have endangered many community cinemas.

The report from the committee also acknowledges the influence of artificial intelligence. It suggests that industry standards focusing on safeguarding human creativity in the realm of generative AI are beneficial, however, the movie and television industries are asking for assistance to capitalize on the growth potential of generative AI in a manner that is equitable, accountable, and law-abiding. The summary emphasizes that the government should finance the British Film Institute’s establishment of an AI observatory and tech demonstrator hub. Mismanaging the balance between AI advancement and copyright could hinder the expansion of our film, high-end TV sectors, and broader creative industries.

Testimony before the culture committee was provided by figures such as Peter Kosminsky, director of “Wolf Hall,” who expressed concern that the contemporary series “Wolf Hall: The Mirror and the Light” might not be produced today due to financial difficulties. On the other hand, Jane Featherstone, producer of “Black Doves,” stated that the business models of streaming platforms primarily cater to shows with global rather than local appeal.

Participants praised the suggestions outlined in the report. Kosminsky expressed his strong approval of the Culture, Media and Sport select committee’s endorsement for a 5% levy on streaming platform earnings to bolster public service broadcasting high-end television. “This is a bold move in the current political climate and undoubtedly the correct course of action,” said Kosminsky. However, he believes it is crucial to specify that the fund generated by this levy should only be accessible for productions that are either commissioned or co-commissioned by a public service broadcaster. As it appears, this requirement isn’t explicitly stated in the report, and it is of utmost importance.

As a gaming enthusiast, I’d rephrase it like this: “I, as part of the gaming community, am excited about our latest report – the first in over 20 years focusing on our sector. It comes at a perfect time to explore ways we can foster and boost cultural and economic growth for the U.K.’s top-tier video game development and high-end streaming industry. Many of the suggestions align perfectly with projects we’re already working on, such as securing finance for production, distribution, and exhibition – including special assistance for independent gaming studios and domestic distributors.

Catharine Des Forges, head of the Independent Cinema Office, emphasized that the committee’s report acknowledged the immediate financial support required for independent cinemas, which is crucial for their existence and poses a significant obstacle to growth for many.

Simultaneously, Katheryn Needham, CEO of Studiocanal U.K., expressed her company’s dedication to creating crowd-pleasing British independent films. However, she pointed out that the expenses associated with marketing can often make it difficult to reach larger audiences. She suggested that tax relief should be expanded to cover print and advertising costs. This way, films that qualify for the Independent Film Tax Credit could potentially draw in a wider audience, thus enhancing cultural influence and economic growth.

Marie-Claire Benson, who is the executive vice president and head of the motion picture group at Lionsgate U.K., stated that a 25 percent tax relief on Production and Advertising (P&A) costs could significantly enhance the United Kingdom’s independent film industry. She described it as a shrewd, tailored policy that acknowledges the crucial function distribution plays in the film industry by linking exceptional British storytelling with viewers nationwide.

Zygi Kamasa, CEO of True Brit Entertainment, stated, “To effectively release a British film in the UK, we’re essentially going head-to-head with big-budget blockbusters, video games, and other retailers when it comes to advertising. These competitors typically have far more financial resources at their disposal than independent film distributors. A tax credit for promotions and advertising (P&A) would significantly help distributors and the films themselves to maximize their earnings potential at the box office.

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2025-04-10 02:25