U.K. Streaming Levy Officially Rejected by Government: “We Support a Mixed Ecology”

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Relax, streamers, the U.K. government has turned down proposals that would have imposed fees on services such as Netflix, Amazon Prime, and Disney+.

The Culture, Media and Sport Committee in Britain has proposed a streaming tax with an aim to support local TV and movie production on a large scale, particularly British productions. This tax would enable public broadcasters like the BBC and ITV to recoup some of the substantial financial resources currently taken by streaming platforms.

As the U.K.’s thriving production sector progressively shifts towards platforms, the nation’s spending on production reached an impressive £5.6 billion ($7.9 billion) in 2024, marking a significant 31% rise since the previous year (2023). Notably, about £4.8 billion ($6.5 billion) of this total investment can be attributed to inward investments and co-productions.

In its statement released on Thursday, the government opted against endorsing the suggested 5% tax, instead advocating for “a balanced and diverse film and television industry landscape.

As a devoted admirer, I can’t help but acknowledge the pivotal role Subscription Video on Demand (SVoD) services play in boosting our homeland’s prosperity. For instance, initiatives like Amazon Prime’s Video Pathway and Disney’s strategic investments in the growth of Bedfordshire’s National Film and Television School have significantly impacted our domestic sector.

Over the past five years, Barbie and Bridgerton have significantly boosted the U.K. economy, contributing approximately £80 million ($109m) and £275 million ($375m), respectively. Notably, the popular Netflix series, Bridgerton, has supported around 5,000 local businesses within Britain.

To uphold our goal of fostering a diverse ecosystem, we plan to maintain collaborations with significant Streaming Video on Demand services, the independent production industry, and Public Service Broadcasters. We aim to establish advantageous arrangements that benefit everyone involved.

The government expressed its intent to enthusiastically support greater investment in British content and is aiming for more fruitful collaborations between streaming platforms and public service broadcasters, such as the joint production of shows like “His Dark Materials” by the BBC and HBO, or the collaboration between BBC Three and Netflix on “A Good Girl’s Guide to Murder”.

Netflix has poured billions of British pounds into the U.K., collaborating with over 200 production companies and employing around 30,000 cast and crew members. A source close to the matter expressed their concern to THR, stating that a levy would amount to a double taxation for Netflix members who have already paid the BBC license fee. The source added that this levy is essentially a tax on success, and it unfairly penalizes both Netflix and its members. In simpler terms, they argued that this levy is a penalty for being successful, and Netflix’s members will bear the brunt of it.

The government’s action does not include a plan for resuming participation in the European Union’s Creative Europe program. However, we acknowledge and appreciate the significant and distinctive impact these sectors have on Europe’s culturally rich environment and the economic advantages derived from this connection.

The government plans to boost funding for the U.K. Global Screen Fund, raising it from £7 million (approximately $9.5 million) to £18 million ($24.5 million) each year, as a demonstration of their dedication towards expanding the global influence of British independent screen content.

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2025-07-03 18:24