This is a specialized legislative research report published by the National Diet Library in the "Foreign Legislation" series in August 2025, dealing with legal analysis of Germany's new film funding act enactment.
Background of Film Funding Act Amendment
Digital technology advancement and distribution platform proliferation have fundamentally changed film industry structure. With the rise of streaming services including Netflix, Amazon Prime, and Disney+, traditional cinema-centered distribution systems have transformed, diversifying film production, distribution, and consumption forms. German film industry, while valued at approximately €2 billion annually, faces structural challenges including declining domestic film market share due to intensified international competition with Hollywood films and emerging film powers like Korea and India, outflow of film talent overseas, and deteriorating management of regional cinemas. To address these challenges and foster competitive film industry in the digital age, fundamental review of existing film support systems was decided through new legislation.
Comprehensive Framework of New Support System
The new Film Funding Act establishes comprehensive support systems targeting the entire film industry value chain from production stages to distribution, screening, and digital distribution. Production support strengthens funding provision for diverse formats including feature films, short films, documentaries, animation, and VR films, international co-production promotion, and emerging director and producer development programs. Distribution support institutionalizes digital marketing cost subsidies, film festival participation support, international sales promotion, and subtitle and dubbing production cost subsidies. Additionally, cinema equipment digitization, barrier-free compatibility, and regional cinema maintenance support are legally established.
Coordination with Digital Platform Regulation
The new law introduces a "film investment system" imposing investment obligations in German films on major streaming platform operators. Platform operators with annual revenues above certain scales have legal obligations to invest certain revenue percentages in German film production and acquisition, with this mechanism expected to channel approximately €300 million additional investment annually into the film industry. Additionally, "cultural diversity assurance measures" including preferential display of German films on platforms, favorable treatment in search results, and multilingual subtitle provision are also mandated.
Human Resource Development and Technology Innovation Support
To improve German film international competitiveness, film educational institution support expansion, industry personnel continuing education programs, and international exchange and training system enhancement are planned. Particularly priority budget allocation is made for research and development of new technologies utilizing AI, VR/AR, and blockchain technologies, digital tool introduction support, and cybersecurity measures. Additionally, promoting women director and producer appointment, ensuring diversity and inclusion, and supporting disabled persons' film industry participation are legally institutionalized.
Consistency with EU Cultural Policy
This law strengthens German unique cultural industry policy while maintaining consistency with European Union "Creative Europe Programme," "Media Programme," and "Digital Single Market Strategy." EU-wide film co-production promotion, distribution network expansion, digital technology standard unification, and copyright protection strengthening are promoted within international cooperation frameworks. Additionally, maintaining film cooperation relations with post-Brexit UK and strengthening bilateral film agreements with France and Italy are positioned as important policy issues.
Sustainability and Social Responsibility
The new law positions film industry environmental burden reduction as an important policy goal, including support for environmental consideration at filming sites, CO2 reduction through digital distribution, and sustainable film production method dissemination. Additionally, social responsibility including social message dissemination through films, multicultural understanding promotion, democratic value dissemination, and historical awareness inheritance are incorporated into film support evaluation criteria.
Economic Effects and Cultural Diplomacy
German film industry creates approximately 250,000 jobs and generates over 500,000 economic effects including related industries. New law implementation is expected to bring film industry international competitiveness improvement, export promotion, tourism attraction effects, and regional economic vitalization. Additionally, strategic effects including German culture and value dissemination worldwide through improved German film international presence, soft power strengthening, and cultural diplomacy advancement are anticipated.
The article provides multifaceted analysis from cultural policy, media law, and international economic law perspectives of what influence Germany's new film funding act has on other EU countries and developed nations' film policies as a digital age cultural industry policy model, and what contribution it makes to European film competitiveness improvement in the global visual content market.