Industry warns: New film tax endangers the future of broadcasting!

Industry warns: New film tax endangers the future of broadcasting!

The trade association of telecommunications and broadcasting companies in the Austrian Economic Chamber and the Association of Austrian Private Broadcasters express considerable concerns about the planned “investment obligation” and a film levy. According to the associations, the implementation of these measures could have adverse effects on the Austrian media location. The aim of the initiative is for streaming providers to invest part of their sales in domestic film productions and to pay another part as a film funding levy. These suggestions come from Federal Minister Andreas Babler, who would like to make international streaming platforms more financially responsible in Austria, although there are already existing legal challenges.

The affected industry representatives fear that the resulting financial burden could have a negative impact on Austrian TV channels and on-demand services. According to medianet.at and ots.at effective exceptions for Austrian media providers cannot be implemented due to the requirements of EU law. This could lead to increased competitive and exclusionary pressure from international providers and endanger the added value of the Austrian broadcasting industry.

Content concerns and media policy goals

The measures put forward could also run counter to the federal government's media policy goals, particularly with regard to the diversity and quality of the Austrian media offering. The associations warn that the selective funding of Austrian films through the planned investment obligation could be subject to problems under European law. A proposal for an opposite solution is a “tax credit system”, which could offer tax incentives for productions in Austria and would therefore not represent a competitive disadvantage for local providers.

The urgency of this discussion is supported by the economic dominance of international digital companies. The motion for a resolution, introduced by MPs such as Sigrid Maurer and Werner Kogler, calls for measures to ensure fair taxation of these companies. In 2024, around 2.6 billion euros in advertising money from Austria flowed to companies such as Google and Meta, although these only contribute inadequately to financing the domestic media system. Parlament.gv.at emphasizes that the lack of revenue from a planned increase in the digital tax could endanger fundamental areas such as quality journalism and media diversity.

The measures demanded by the associations to fairly distribute the financial burden and to strengthen the film and music industry are the result of an ongoing political and economic discourse. The resolution proposes, among other things, a significant increase in the digital tax for international digital companies in order to promote the digital transformation of domestic media and maintain the quality of journalism.