‘Wolf Hall’ Director: Why a U.K. Streaming Levy Isn’t a Tariff (Guest Column)

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On April 15th, an article by The Hollywood Reporter was released, based on opinions of various observers, suggesting that the proposed U.K. streamer tax, which has been advocated by British program-makers and recently endorsed by a U.K. parliamentary committee, may not actually be implemented. The reasoning behind this prediction is that it could be viewed as a tariff by the White House, potentially jeopardizing ongoing trade negotiations between the two nations. However, it’s important to note that the streamer tax is not technically considered a tariff.

In 2023, I finished filming “The Mirror and the Light” for Masterpiece and BBC, concluding a decade-long project that started with “Wolf Hall“, which won a Golden Globe, multiple BAFTAs, and was nominated for 8 Emmys. However, if we were to produce “The Mirror and the Light” in 2025, it would likely not be successful due to financial constraints. Our previous work, “Mr Bates vs The Post Office”, significantly impacted the U.K.’s national debate on a crucial issue but left its creators heavily in debt. As a result, there’s no point in developing it for ITV now because public service broadcasters in the U.K. can no longer afford to produce high-end dramas due to increased production costs driven by streaming platforms. These platforms, attracted by our tax incentives, are now producing numerous drama series in Britain, and with their vast resources, they’ve pushed up production costs across the industry, making it difficult for domestic broadcasters to compete.

Last year saw a significant 25% drop in top-tier drama production by PSB (Public Service Broadcasters), marking the lowest point since 2019. A parliamentary committee proposes that implementing a levy on streaming platforms could potentially reverse this trend, creating a production fund and fostering growth rather than contraction. However, there’s a general consensus that the U.K. government may not have the courage to confront the ‘Trump tiger’ (a metaphor for the powerful streaming giants).

If an American company seeks to sell its products in China, it faces a tariff of 125%, which the Chinese government collects and doesn’t return to the importer for manufacturing costs. However, streaming services like Netflix, Amazon, or Disney+ could potentially recoup some expenses from a proposed 5% levy fund if their content is a co-production with a British public service broadcaster, under one condition.

Initially, when streaming services emerged in the U.K., they showed great interest in joint production. However, their enthusiasm has significantly decreased over time. It’s common knowledge that these streamers aim to acquire full Intellectual Property rights, which adds to the financial struggles of BBC, ITV, and C4. A levy fund could potentially revitalize the co-production market. If streaming services wish to tap into this new source of funds, they would have to collaborate with local broadcasters, benefiting both parties. This new production finance pool offers an opportunity for PSBs to team up creatively with top global producers once more.

Streamers might be considered the pinnacle of free market television. They’ve produced groundbreaking, genre-defying content, elevating high-end TV drama as the preferred medium for top-tier talent, often overshadowing feature films and blurring the once rigid boundary between theatrical and television filmmaking. However, this creative boom has inadvertently pushed aside the U.K.’s public service broadcasters, which produce programming not typically favored by streamers’ global audience. These broadcasters embody a 100-year legacy of British program-making, a tradition that the British audience might not appreciate being discarded.

A 5% tax could swiftly resolve this market issue, making streaming services strive for even greater quality. This is because they would again be compelled to rival traditional broadcasters like the BBC, ITV, and C4. Unlike a tariff, streamers could recoup their own funds when collaborating with local broadcasters in co-productions. This solution appears to be the most effective for the pressing challenge currently faced by high-end UK television, which many have come to acknowledge. The main question now is whether the UK government has the courage to enforce it.

Peter Kosminsky, who has extensive experience in British public service broadcasting, boasts an impressive collection of awards, including seven BAFTAs, a Peabody, and a Golden Globe.

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2025-04-21 20:54