RIGA - Prime Minister Andris Kulbergs (United List) has promised the Latvian film industry EUR 1 million starting in 2028, although there is still no clarity about the source of this funding.
The prime minister, who met with film industry representatives on Tuesday, told reporters that this issue is scheduled to be addressed next year as part of a review of funding that is allocated without a competitive bidding process. Kulbergs stressed that things will not continue this way.
He noted that an agreement has now been reached to offer the film industry funding that the industry can count on, and that the rules will be further developed later. Kulbergs emphasized that plans are in place to develop a model for financing the film industry.
As reported, Kulbergs had previously expressed the view that the government should consider abandoning the proposed tax on streaming platforms and instead focus more on supporting the development of the film industry. The prime minister noted that it is necessary to assess whether the benefits of such a tax outweigh the potential risks to Latvia’s relations with its strategic partners.
Kulbergs believes that the potential revenue from the tax would be relatively small, whereas the interest of foreign film producers in filming in Latvia could yield more significant benefits for the country. He noted that during his visit to the U.S., the president met with representatives of the film industry, including Warner Bros., who expressed interest in potential opportunities for cooperation.
Representatives of the Latvian film industry have raised objections to Kulbergs’ remarks, arguing that the new tax should be implemented.
Currently, the amendments approved by the Saeima in the second reading stipulate that an electronic media outlet providing on-demand audiovisual services must submit a report on revenue earned in Latvia from on-demand audiovisual services in the previous year for the first time by May 31, 2028, for the period from January 1, 2027, to December 31, 2027. However, if investments totaling at least EUR 300,000 are made in 2027 and 2028, the revenue earned in 2026 and 2027 would not need to be reported.
The aim of the draft law is to promote the creation of high-quality audiovisual content in the Latvian language and to ensure its wider availability to viewers, as stated by the Ministry of Culture in its explanatory notes. The ministry says that consumption of international streaming platforms has increased significantly in recent years, yet their products include relatively little content produced in Latvia, and furthermore, they have not yet invested in the production of Latvian films and series.
The requirements are expected to apply both to service providers registered in Latvia and to streaming platforms registered in other European Union (EU) member states whose target audience is in Latvia.
Under the proposal, service providers will be required to invest at least 3.5 percent of the revenue they generated in Latvia during the previous year. Investments may be made by funding the production of Latvian films and TV series, acquiring distribution rights to them, or making contributions to the budget of the National Film Center. These requirements will not apply to service providers with low revenue or a limited audience.
NKC Director Dita Rietuma previously told committee members that once the changes take effect, the film industry could receive an estimated EUR 600,000 to EUR 1 million per year.
The ministry notes that in Latvia, on-demand audiovisual services are provided by 26 electronic media outlets registered in Latvia, including Tet and Latvijas Mobilais Telefons (LMT), while approximately 80 service providers registered in other EU countries also operate in the Latvian market, including Netflix, Disney+, Amazon Prime Video, Apple TV+, and others.
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