Film funding: Federal Councilor Berset presents arguments for "Lex Netflix

The so-called "Lex Netflix" is intended to put domestic and foreign TV broadcasters and streaming services on an equal legal footing. Culture Minister Alain Berset presented the arguments for the adoption of the amended film law to the media in Bern on Tuesday.

On May 15, the electorate will be able to express its opinion on the bill, provided the referendum is formally passed. The referendum against the planned investment obligation for Netflix and Co. has been initiated by the young parties of the FDP, SVP and GLP.

The amendment to the law stipulates that streaming services such as Netflix, Amazon or Disney must also invest four percent of their revenue generated in Switzerland in Swiss filmmaking, according to the Federal Department of Home Affairs (FDHA). To do so, they can either invest directly in Swiss productions or pay a substitute levy that will be used to support Swiss film.

Annual 18 million francs

In addition, streaming services will now be required to broadcast at least thirty percent of series or films produced in Europe. The additional amount for the benefit of Swiss filmmaking from this expanded investment obligation is estimated at CHF 18 million per year, according to the FDHA. Foreign television stations with Swiss advertising windows will also have to contribute to the diversity of film offerings.

According to the Federal Council and Parliament, the bill will ensure that domestic and foreign TV broadcasters and streaming services are placed on an equal legal footing. The bill also ensures that a small portion of the revenue generated in Switzerland remains in Switzerland.

An impact of the investment obligation on the prices of streaming providers is unlikely, the DHA added. The obligation for streaming services to show at least thirty percent European films and series is already applied in the EU and is below the requirements for TV broadcasters. Streaming services are already complying with it. Nothing will change for consumers in Switzerland.

Consumers restricted

The referendum committee, on the other hand, believes that streaming services could increase their prices because of the planned change in the law. This is unfair to young people in particular, they say. The opponents of the bill also consider it unfair that streaming services would have to make thirty percent of their programming available for European films. According to the committee, this requirement restricts the freedom of consumers and puts productions from other parts of the world at a disadvantage. (SDA)

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