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American Focus > Blog > Entertainment > Streamers Urged to Pay U.K. Levy in Parliament Report
Entertainment

Streamers Urged to Pay U.K. Levy in Parliament Report

Last updated: April 9, 2025 4:12 pm
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Streamers Urged to Pay U.K. Levy in Parliament Report
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The British government has been called upon to implement a series of drastic measures to support the struggling U.K. TV industry and independent film sector, as highlighted in a comprehensive report presented to a major parliament committee. The report emphasized the need for tax breaks and a streamer levy as part of an urgent support package for the crisis-hit high-quality drama sector in the U.K.

Amidst rising costs, a decline in the ad market, significant funding cuts in local networks, and a reduction in global co-productions by studios and streamers, the report recommended an enhanced tax incentive for domestic high-end TV production, similar to the Independent Film Tax Credit (IFTC) introduced in 2024.

The report also underscored the challenges in financing prestigious British storytelling, with examples like “Wolf Hall: The Mirror and the Light” only moving forward after lead star Mark Rylance took a substantial pay cut. It urged streamers to contribute 5% of their U.K. subscriber revenue to a cultural fund aimed at financing drama specifically catering to British audiences.

Furthermore, the report highlighted the unsustainable dynamic between independent producers and streamers, suggesting ways for U.K. production companies to retain a greater share of intellectual property rights when collaborating with streaming platforms. It also recommended additional measures to support the film industry, including a targeted 25% tax relief for the prints and advertising costs of films benefiting from the IFTC.

In addressing the freelance workforce dominating the industry, the report proposed initiatives to enhance skills and workers’ rights, such as appointing a Freelancers’ Commissioner. It also called for the government to fund an AI observatory and tech demonstrator hub in collaboration with the British Film Institute, reduce taxes on cinema tickets, and conduct regular assessments of U.K.’s film and TV tax incentives to maintain competitiveness.

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The report also stressed the importance of combatting bullying and harassment in the industry, urging long-term funding for the Creative Industries Independent Standards Authority and government intervention if voluntary solutions are not implemented.

Committee chair Dame Caroline Dinenage MP emphasized the need for government intervention to balance the playing field and ensure the survival of independent British producers amidst the influx of international investments in the industry.

Notably, the report’s recommendation for a 5% levy on streamers was supported by industry figures like director Peter Kosminsky, who emphasized the need for the fund to benefit productions commissioned or co-commissioned by public service broadcasters.

While some distributors, including Netflix, raised concerns about the potential impact of the levy on consumers, others like StudioCanal, Lionsgate, and True Brit welcomed the proposal for a P&A tax relief on British indie films, citing the need to compete with larger budget releases for successful distribution.

In conclusion, the report’s comprehensive recommendations aim to revitalize and sustain the U.K. TV and film industry, ensuring the continued production of high-quality content and supporting the growth of independent producers in the competitive global market.

TAGGED:LevyparliamentPayreportstreamersU.Kurged
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