The UK Culture, Media and Sport Committee has proposed a 5 percent tax on subscriber revenue from US-based streaming services like Netflix and Disney+. This move aims to support Britain's struggling film and high-end television (HETV) industry after significant declines in production spending. Should these companies fail to voluntarily contribute to a cultural fund that promotes local content, the government may implement a mandatory levy. The proposal highlights the risk to public service broadcasters and independent producers, emphasizing the need for greater investment in UK-produced content.
The CMS committee's report argues that public service broadcasters and independent movie producers are 'at risk' due to how the industry currently works.
If streaming services face higher taxes in the UK, costs could be passed onto consumers, resulting in more streaming price hikes.
The industry should establish this fund on a voluntary basis; however, if it does not do so within 12 months, a statutory levy will be introduced.
Calls for a streaming tax in the UK come after 2024's 25 percent decrease in spending for UK-produced high-end TV productions.
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