Netflix has raised concerns over a new German proposal that would require streaming platforms to reinvest a significantly larger portion of their revenue into European productions. The plan, which is currently under government review, is part of a broader effort to strengthen Germany’s film and television sector through increased subsidies and stricter regulations.
The proposal would require companies like Netflix to reinvest between 8 and 12 percent of their local revenue into European content. This marks a sharp increase from the current requirement, which sits at roughly 2 percent. In exchange, Germany plans to nearly double its film subsidy budget to €250 million, aiming to attract more international productions.
Netflix’s director of public policy in Germany, Wolf Osthaus, cautioned that such a move could have unintended consequences.
“If regulation ultimately makes it harder to invest in ambitious projects and, as a result, fewer titles are produced, that benefits neither audiences nor the production location,”
he told Financial Times.
What the New Rules Could Mean for Global Streamers
The proposed legislation is expected to pass through cabinet review before heading to parliament later this year. Alongside the reinvestment requirement, the draft includes a clause allowing producers to regain rights to their projects after seven years. This would represent a notable shift in how intellectual property is handled, as current agreements are typically negotiated on a case-by-case basis.
Germany’s approach reflects a wider trend across Europe, where governments are introducing policies to ensure that global streaming platforms contribute more directly to local creative industries. Countries such as France and Spain already enforce similar frameworks, though Germany’s proposed reinvestment range would place it in the mid-tier of European regulation.
At the same time, the move comes as U.S.-based streaming companies increasingly look abroad for production due to rising costs in domestic markets. German officials hope the combination of subsidies and obligations will make the country a more attractive destination for large-scale film and television projects.
Industry Groups Raise Concerns Over Impact
The proposal has not only drawn criticism from Netflix but also from broader industry groups. Vaunet, a German media association representing companies including Disney+, Paramount+, and Warner Bros. Discovery, has warned that such regulations could disrupt the balance of the production ecosystem.
Managing director Daniela Beaujean argued that simply mandating investment does not guarantee that productions will take place within Germany. She also raised concerns about the rights reversion clause, suggesting it could weaken incentives for long-term investment by shifting control of intellectual property back to producers without requiring proportional financial risk.
Netflix has also emphasized its existing contributions to the region, noting that it fulfilled a commitment to invest €500 million and produce 80 titles across Germany, Austria, and Switzerland between 2021 and 2024. According to the company, turning such targets into strict legal requirements could reduce flexibility and slow down future production decisions.
German Studios and Producers Support the Proposal
While global streamers remain cautious, parts of Germany’s domestic film industry have welcomed the proposed changes. Babelsberg Studio CEO Jörg Bachmaier described the policy as a “strong signal” for the country’s production terrain. He noted that recent increases in subsidies have already helped secure multiple major streaming projects.
Similarly, Constantin Film CEO Oliver Berben supported the idea of allowing producers to regain rights after a set period. He argued that this change could provide financial stability and encourage reinvestment into new projects, ultimately strengthening Germany’s creative sector.
The German culture ministry has defended the proposal, stating that it aims to balance incentives with obligations. Officials believe the policy could attract international productions while ensuring that local creators benefit from sustained funding and industry growth.
