On-demand streaming service providers.

Draft Act on the contribution of on-demand streaming service providers to the promotion of Icelandic cultureand language.

The Draft Proposal aims at implementing Article 13(2) of the Directive (EU) 2018/1808 of the EuropeanParliament and of the Council of 14 November 2018 amending Directive 2010/13/EU (OJ L 303, 28.11.2018, p. 69-92) by introducing a cultural contribution scheme for on-demand audiovisual media services (AVMS)providers under Icelandic jurisdiction as well as providers established i other EEA Member States, targetingaudiences in Iceland.

The proposal encompasses two alternatives:
1) an obligation for providers of on-demand streaming service providers to contribute a maximum of 5 per centof subscription revenue generated in Iceland on an annual basis to the Icelandic film fund. The percentage ofthe financial contribution to the Icelandic Film Fund is reduced proportionally to the volume of direct investmentin the production of domestic content within the meaning of the Act. The payment obligation to the IcelandicFilm Fund ceases when direct investments in the production of domestic content reach 5 per cent of the baseto which the calculation of the cultural levy applies.
2) an obligation of providers of on-demand streaming service providers to invest directly in the production ofIcelandic language works for a sum equal to 5 per cent of the subscription revenue generated in Iceland on anannual basis.
The obligation to contribute does not apply to media service providers with a low turnover or a low audience,the Icelandic National Broadcasting Service (Ríkisútvarpið) or other public service media, video sharing-services or video-sharing platforms and media service providers that do not offer feature films, documentariesor drama television series. The Icelandic Media Commission may furthermore, on application, waive theobligation where it would be impracticable or unjustified.
Direct investment means investment in the production, co-production and the acquisition of rights in new films,television series or documentaries. Investment in the acquisition of rights in works older than three years is notconsidered direct investment within the meaning of this Act. Costs related to news, the broadcasting of sportsevents, games, advertising, teletext services or teleshopping is not considered direct investment.
A direct investment will be considered to have been made in domestic content where at least 75% of thecontent is in Icelandic and the content fulfills one of the following requirements.
a) at least 50% of the production costs is spent in Iceland.
b) at least 50% of the filming of the relevant content takes place in Iceland.
All on-demand streaming service providers paying to the Icelandic Film Fund pursuant to the Act will be eligibleto apply for the allocation of funding from a new grant category on a non-discriminatory basis.
The aim of the law proposal is to advance Icelandic culture and Icelandic language by promoting andsupporting the production of domestic films, television series and documentaries in Icelandic, or otherwisehaving Icelandic cultural and social significance, especially films, television drama programs anddocumentaries in Icelandic. The aim of the proposal is also to increase public access to domestic audiovisualmedia content, which is important for the preservation of the Icelandic language and Icelandic culture in asmall society. Furthermore, increased investment in the production of domestic content can lead to moreemployment opportunities for professionals in the film and television production industry in Iceland.