Germany is preparing to introduce mandatory investment obligations for streaming platforms and major television broadcasters, alongside a significant increase in public funding for cinema, with the aim of strengthening its audiovisual sector and consolidating its position as one of Europe’s leading production hubs.

According to the Ministry of Culture, services such as Netflix and Amazon, as well as the country’s main broadcasters, will be required to reinvest at least 8% of the annual revenue they generate in Germany into the local film and audiovisual industry. The announcement was made on February 5, just days before the start of the Berlinale (February 12–22), as the German capital prepares to welcome international industry professionals.

“This is not symbolic, but a genuine investment boost: for jobs, value creation and creative excellence,” Culture Minister Wolfram Weimer said in a statement.

The proposed framework предусматриes that platforms choosing to invest 12% or more of their revenues in Germany would be exempt from certain regulatory obligations, including requirements related to the production of German-language content. The measure is designed to encourage higher levels of investment by offering companies greater flexibility in how they meet their commitments.

The reform comes amid an expansion in German production, driven by growing demand from major global streaming services. However, the sector has also faced mounting pressure due to rising labor, energy and material costs in recent years.

With these measures, Germany — one of Europe’s largest streaming markets — would join at least a dozen countries on the continent, including France and Italy, that already require international platforms to invest directly in domestic production.

In parallel, the federal government agreed to raise annual public funding for film production to €250 million, nearly double previous levels.

“Now the ball is in the court of the platforms and broadcasters on the one hand, and the producers on the other,” Weimer said.

According to German media reports, the corresponding legislation could be approved by the cabinet before early April. However, it remains unclear what sanctions, if any, would be imposed on platforms that fail to comply with the new requirements.