The U.K. government has rejected a proposal to implement a 5% levy on the local revenue made by streaming services like Netflix, Disney+ and Prime Video.
The recommendation from Britain’s Culture, Media and Sport Committee aimed to establish a cultural fund administered by the British Film Institute in order to support domestic high-end television (HETV) production. It noted that the fund should be established on a voluntary basis and that if it did not do so within 12 months or if there wasn’t full compliance, the government should introduce a levy.
It also recommended that the government look into regulatory measures that could be applied to SVODs to ensure independent production companies developing IP in the U.K. maintain a minimum level of ownership over those rights.
But in its response on Thursday, the government said that it is looking to create a “healthy, mixed film and TV ecology” that welcomes “inward investment,” including from streamers.
The government noted that U.K. production spend on film and HETV reached £5.6 billion in 2024, a 31% increase since 2023, with £4.8 billion of this total coming from inward investment and co-productions.
It also highlighted the economic benefits of projects like “Barbie,” which contributed £80 million to the U.K. economy, and “Bridgerton,” which contributed £275 million and supported 5,000 local businesses over the past five years. Additionally, it touted investments including Amazon’s Prime Video Pathway training program and Disney’s contribution to the new National Film and Television School expansion.
“One of the benefits of a mixed ecology is that producers can strike deals both with streamers, which typically involve higher upfront fees, and with [public service broadcasters], whose terms of trade mean that secondary rights normally remain with the producer,” the report states. “We are mindful, therefore, of the importance of enabling strong inward investment given the benefits it provides for our domestic industry and wider economy, and we have no plans to introduce a levy on SVOD services.”
Instead, the U.K. government said it would continue to engage with the major streamers, the independent production sector and with public service broadcasters on “how best to ensure mutually beneficial conditions for all parties.”
It also said that it strongly welcomes increased investment in U.K. content and wants to see more co-productions between SVODs and public service broadcasters, such as BBC and HBO’s “His Dark Materials” and BBC Three and Netflix’s “A Good Girl’s Guide to Murder.”
Additionally, it said it would “build on the Media Act and Ofcom’s Public Service Media review by taking action to support public service media and the wider television ecosystem.”
As part of a new £75 million “screen growth” package, the U.K. government has committed to scaling up the Global Screen Fund from the current £7 million per year to £18 million per year.
It said the increased funding will support the distribution of up to 200 films and the creation of up to 75 new international film and TV co-productions, and will support up to 175 screen businesses to develop their international capability.
