Wolfram Weimer’s streaming plans: Here comes the “film booster”

The Berlinale begins on February 12th. In order to be able to be seen at the opening ceremony without at least being lynched with looks, Minister of State for Culture Wolfram Weimer really stepped on the gas shortly beforehand.

The German film industry has been waiting impatiently for months for the government coalition of CDU/CSU and SPD to come to terms with film funding. The main topic of dispute recently was the so-called investment obligations for streaming services. Many German producers would like to see US companies such as Netflix, Amazon and Disney+ required by law to make “compulsory contributions” to the German market. In other words: They should invest in the German film industry in proportion to their sales in the country. Such investment commitments of varying severity already exist in France, Spain and Italy.

Shortly after taking office, Wolfram Weimer made it clear that he did not like a legal solution and instead sought a form of “voluntary commitment”. He had already held discussions with Netflix, Amazon and Disney+ in order to “confirm their future commitment in writing in appropriate individual declarations (…)”. With this approach, he is interested, among other things, in “protecting the transatlantic relationship”. This emerges from a paper from his ministry that has been circulating in the industry for almost two months. Presumably because the German government doesn’t want to create additional problems in the delicate relationship with Donald Trump by harassing successful US entertainment companies in Germany.

Success now has many fathers – in addition to Wolfram Weimer, Markus Söder and Lars Klingbeil were the main negotiating partners

Since Weimer’s plans became unofficially known, people have been waiting for him to officially present them. And waited. And waited. But it happened for a very long time: nothing. Among other things, because the SPD is strictly against voluntary commitment and prefers a law. Their argument: This would generate significantly more income than with the voluntary model.

Weimer, we heard again and again from circles in the Bundestag’s culture committee, failed to include the SPD in his plans because he wanted to present results quickly. Which meant that he couldn’t present anything for a long time.

Because a decision on investment obligations is also tied to an increase in federal subsidies for German film funding. Only the SPD-led Finance Ministry under Lars Klingbeil can release this. And apparently the SPD used this release as a means of pressure to get Weimer to make concessions on the subject of investment commitments. Björn Böhning (SPD), State Secretary in the Ministry of Finance, was probably an important mastermind. He was previously head of the Production Alliance, which represents the interests of German producers. She has long been campaigning massively for a legal investment obligation, even under her new chairwoman Michelle Müntefering.

So now both sides have finally come closer. And even if Weimer sells the matter as his success, one hears from the negotiating group that the compromise was reached by Lars Klingbeil for the SPD side and Markus Söder for the Union side. Wolfram Weimer announced the results via press release on Thursday afternoon. He calls it in the most beautiful official English: “Investment pact with film booster”.

Even worse than a compromise would have been no agreement at all for both politics and the film industry

In practice, both sides have made concessions; there will be neither just one law nor just a voluntary model. Instead, an “investment commitment with an opening clause” is being considered. Accordingly, streamers and broadcasters should be obliged to maintain a “basic quota” of eight percent of the previous year’s net sales, “with specific specifications for the type of investments”. The basic quota is the basis for “voluntary commitments from those streamers and broadcasters who are prepared to get more involved”. Anyone who voluntarily undertakes to reinvest at least twelve percent of their sales is allowed to deviate from “the detailed legal requirements” regarding how these funds should be invested. Then the providers could, for example, film in Germany, but in English.

The compromise also means that the increase in state funding for the German film industry, which was previously blocked, can now finally flow. According to Weimer’s ministry, federal subsidies will increase “reliably and over the year to 250 million euros per year”. This is “almost double the previous level”. This part in particular should make German filmmakers breathe a sigh of relief, because the industry was already doing much better.

Apart from the fact that the path to this agreement took at least a few too many detours and should have come much quicker, the deal shortly before the Berlinale is still a small coup. Defeatists no longer expected this. Even worse than a compromise would have been no agreement at all for both politics and the film industry. Even the production alliance appears satisfied in an initial statement: “This compromise builds bridges between creativity and economic responsibility.” And Wolfram Weimer can now iron his shirt for the Berlinale opening a little more carefree.