Germany’s ruling coalition has agreed on plans for a legally binding investment obligation that would require streaming platforms and broadcasters to invest a fixed share of their revenues in European productions.
Following negotiations between the federal government and the CDU/CSU and SPD parliamentary groups, the parties have backed draft legislation that would introduce a minimum investment quota of 8% of annual net turnover for providers operating on the German market. The agreement would also unlock additional federal funding for film support, raising annual spending on economic film funding to €250 million once the law is passed.
Culture minister Wolfram Weimer said the planned legislation would set out a statutory minimum investment level alongside detailed rules on how the investments must be structured. An opening clause would allow companies that voluntarily invest more than 12% of their turnover to deviate from some of those requirements. According to Weimer, the framework is intended to provide planning certainty for the industry while avoiding direct interference in the business models of streamers and broadcasters.
Finance minister Lars Klingbeil said the proposed investment obligation would mobilise private capital in addition to public subsidies, which he described as insufficient on their own to strengthen Germany as a production location. The measures are designed to support employment across studios, technical services and creative professions and to attract national and international productions.
If adopted by the Parliament, the rules would apply to all major providers active in Germany, including global streaming services as well as commercial and public broadcasters. For reasons of EU law, the government can mandate investment only in European productions rather than exclusively in German content, although policymakers expect the domestic industry to benefit disproportionately.
Producers welcomed the coalition agreement. Industry association Produktionsallianz described it as a breakthrough that would allow €120 million in previously blocked federal funds to be released. Board spokesperson Michelle Müntefering said the combination of a statutory minimum and an opening clause for further negotiations created stability while leaving room for future adjustments.
Interest groups representing platforms and broadcasters, however, voiced strong reservations. Industry association VAUNET criticised the planned statutory investment obligation, saying it ignored voluntary commitments by streaming platforms and replaced a flexible solution with rigid regulation. The group warned that an investment quota above the European average, combined with sub-quotas and rights-sharing requirements, raised unresolved constitutional and EU law concerns, and said the framework should be implemented with restraint to minimise negative consequences. Sustainable incentives such as tax credits would be a more effective way to encourage investment, according to the VAUNET.
