Video-on-demand services

Act on Measures to Support the German Film Industry (Film Support Act)

Since 1968, the Film Support Act (FFG) has governed federal support for the film industry, funded by way of an industry-benefiting levy. Under the FFG currently in force, collection of the film levy is set to end on 31December 2024. This amendment to the FFG continues the collection of the film levy from parties exploitingcinematographic films for a further five years and brings the levy system in line with current market conditions.The new FFG must therefore enter into force no later than 1 January 2025. Cinemas, video programmeproviders, video-on-demand providers, free TV broadcasters, pay TV broadcasters and programme marketersare required to pay the levy. Revenue from the levy is used to support the production and distribution ofcinematographic films by the German Federal Film Board (FFA). Some of the revenue is also used to supportcinemas.

The draft changes the way in which the levy to be collected from cinemas is calculated, moving from a screen-based calculation to a cinema-based calculation. Collection of the levy on video programme providers willcease at the end of 2027 due to the expected sharp drop in turnover. The amount of the levy on video-on-demand services remains unchanged. Merely clarifications are being added as well as rules on the division ofthe levy burden where multiple providers are involved. The power for TV broadcasters and programmemarketers to replace some of the levy by way of media services is being deleted.
The draft also reduces red tape in connection with support for the film industry, while increasing thetransparency and efficiency of funding procedures and decisions. The self-governing autonomy of the FederalFilm Board is being increased by strengthening its powers to issue secondary legislation. The tasks assignedto the bodies of the Federal Film Board are being distinguished in greater detail. Overall, funding is beingsimplified and the level of automation with respect to funding is being increased, in particular a switch to fullyautomated production and distribution support and partly automated project cinema support.