UK Considers Implementing 5% Tariff on US Streaming Services: Netflix, Disney+, Prime Video, Apple TV+

British lawmakers are proposing a 5% tariff on popular streaming services like Netflix, Disney+, Prime Video, and Apple TV+ to help boost local movie and TV show production. According to the Culture, Media and Sport Committee, the rising costs of production due to these streamers have negatively affected content creation at the BBC, ITV, and Channel 4.

To address this decline in domestic production, the committee has suggested implementing tax breaks and tariffs on foreign streaming services. The goal is to level the playing field and ensure that uniquely British stories have a chance to reach audiences. Caroline Dinenage MP, Chair of the CMS Committee, emphasized the importance of preserving British storytelling amidst the influx of international content.

The proposed measures include a 25% tax break and a 5% tariff on U.S. streamers’ U.K. revenue. The revenue generated from these measures would be used to create a cultural fund to finance dramas tailored to British audiences. Marie-Claire Benson from Lionsgate UK believes that these initiatives could significantly benefit the independent film sector in the U.K. by strengthening distribution channels and supporting British filmmakers.

By introducing these tax incentives and tariffs, British lawmakers aim to reinvigorate local content production and ensure that British storytelling remains a vibrant part of the entertainment industry. This initiative seeks to strike a balance between supporting international streamers and promoting the diversity and creativity of British film and television.