European VOD Coalition Claims Denmark’s 6% Streamer Tax Will Be “Damaging For Whole Creative Ecosystem”

Borgen season four was co-produced for Netflix and Danish broadcaster DR Netflix

The European VOD Coalition, which represents the likes of Netflix, Warner Bros Discovery and Paramount, claims a plan to create a 6% streamer levy in Denmark will devastate the country’s creative sector.

A statement released today slammed the proposed to create a ‘Cultural Contribution Act’ and urged the new Danish government to “show leadership and true support for its production ecosystem by rethinking” it, and specifically dropping the streamer tax.

Denmark has been beset by problems in its production and creative sectors this year, with a standoff between directors, writers and actors unions and streamers such as Netflix and Viaplay erupting earlier this year.

That conflict, added to the proposed levy, had meant the SVoD services had collectively pulled back from all commissioning, though local broadcaster TV2 and Viaplay struck short-term agreement with Create Denmark and Netflix followed suit by striking a new deal last week. TV2 and Netflix’s deals haven’t yet been officially signed and Prime Video and Disney+ deals haven’t yet been cut.

“It is clear that the proposal as it currently stands will be damaging for the whole creative ecosystem. The levy will chase production away rather than foster investment and partnership,” the European VOD Coalition statement claimed.

“Coalition members are committed to investing in high quality Danish and European productions and seek a sustainable, long-term framework that rewards and encourages investment rather than double taxing success.” “

Denmark’s recent election ended in the ruling Social Democrats as the largest party, though local reports suggest the centre-left organization may have to team with right-leaning counterparts to form a new government.

The statement adds the body was “ready to meet with the government to explain the economic realities, and to renew our support for Danish content.”

European regulation on streaming continues to be a hot button topic, with the likes of France and Spain both implementing legislation that requires SVoD services to spend certain levels of local revenue on local shows.

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