On-demand media services or video-on-demand services

Act on the promotion of European audiovisual works through an investment obligation for media service providers (Media Investment Obligation Act – MedienInvestVG)

Under the MedienInvestVG, media service providers, i.e. on‑demand video services and television broadcasters with media libraries that benefit from the German viewing market, are required to invest 8 per cent of their net turnover (or, in the case of public service broadcasters, of their programme expenditure) in the production and distribution of European audiovisual works. The aim is to ensure a stable and sustainable level of investment in the German production sector. A defined share of these investments must be allocated through subquotas to the production of new works (60 %), to original German-language works (80 %) and to productions by independent film producers (70 %). In addition, a rights reversion clause is intended to strengthen the position of independent film producers. To ensure sufficient flexibility for the market at the same time, an opt-out clause allows deviations from the investment-related provisions of the Act through a voluntary agreement between the media service provider and one or more representative associations of producers, provided that the media service provider commits to increased investments of at least 12 per cent and that fair arrangements on the granting of usage rights are established. The German Federal Film Board (FFA) will verify compliance with both statutory and voluntary obligations on the basis of confidential transmission of the relevant turnover figures and investment documentation by the media service providers. In cases of non‑compliance, the FFA may impose a compensatory levy. The effectiveness of the Act will be evaluated after three years by the Federal Government Commissioner for Culture and the Media (BKM), who will report the findings to the Bundestag.