‘Netflix tax’ to fund homegrown Danish television

Denmark will make foreign streaming services pay up to 5 per cent of their turnover to fund native film and television programs.

There are concerns in Denmark that Netflix and rivals such as HBO and Disney+ are taking market share at the expense of native broadcasters Picture: istock Danish

Denmark is to make foreign streaming services pay a “Netflix tax” of up to 5 per cent of their turnover to fund homegrown film and television.

The streaming companies, also including HBO and Disney+, will also be obliged to let officials inspect the algorithms that determine which videos are recommended to their subscribers.

The measure is partly a response to concerns that Netflix and its rivals are gobbling up market share in Denmark at the expense of native broadcasters.

Ane Halsboe-Jorgensen, 38, the Danish culture minister, said that in the long run the streaming giants could pose a threat to the “Danish content that brings us together as a society”.

“Our world has changed,” she said. “Democratic discourse and the way we use media are going through a period of upheaval, not least because of digitisation. That’s why we’re doing things differently this time.”

Denmark is not the only European country that is worried about the future of its film industry. Last summer France forced the companies to invest between 20 and 25 per cent of their local revenue into French cinema, television and theatre. They must also ensure that 30 per cent of the content they offer French subscribers is made in Europe.

In Poland the streaming companies pay 1.5 per cent of their income from sales to the Polish Film Institute, a state body that funds the country’s cinema industry. Portugal has a similar levy amounting to 1 per cent of annual turnover.

The Danish “cultural contribution” is part of a broader package of media reforms that will also provide funding to prop up local and regional newspapers outside the larger cities.

The government plans to establish a Centre for Technology and Democracy, where researchers will investigate how tech firms are changing Danish politics and affecting the country’s social cohesion.

The Times