Taxes on streaming
Posted on Jun 11, 2025 by Admin
The British TV and indie film industries are spiralling as streamers become more powerful. MPs propose market regulations meant to protect British producers and keep costs at bay
Words Katie Kasperson
British high-end television is among the world’s best, with programmes like Doctor Who, Peaky Blinders and, most recently, Adolescence raking in impressive viewing figures and steering cultural conversations. Yet with
unsustainably high production costs, the market is heading towards a streaming service monopoly, edging out local public broadcasters and indie studios and thus driving talent elsewhere.
The Culture, Media and Sport (CMS) Committee has drafted a report that proposes multiple remedies, including a 5% levy on streamers, tax breaks for British-made TV and a dedicated freelancers’ commissioner who would protect workers’ rights. It also suggests lowering taxes on cinema tickets, which would aid indie filmmakers, funding an AI observatory and completing a biannual analysis of how the UK’s tax incentives compare to those of other countries.
The proposed levy hasn’t landed well with Netflix, who claim that the fees would just end up falling on consumers. With constant increases in subscription prices, as well as a £5 hike in the cost of a TV Licence (now £174.50 per year), the streamer raises a valid concern amid the ongoing cost-of-living crisis. That said, public broadcasters are largely on board with the levy, suggesting that those with deeper pockets can afford the investment – ultimately benefitting the entire industry and ensuring its longevity.
The parliamentary proposition follows in the footsteps of the Independent Film Tax Credit, announced just last year. Though this initiative has helped ease some financial burden for filmmakers, it’s a far cry from a comprehensive solution. British director Peter Kosminsky has been a strong supporter of the levy, revealing that he was only able to make Wolf Hall by slashing lead actor Mark Rylance’s pay – a move that could have been avoided with additional funding. If streamers were to pay 5% of their UK revenue into a pool, then British broadcasters could continue to produce exceptional television without having to cut corners.
“Big box-office blockbusters made in Britain have showcased the UK’s world-class film and high-end TV industry like never before,” said CMS Committee chair Dame Caroline Dinenage MP, “but the boom in inward investment of recent years now risks crowding out our many talented independent British producers. While streamers like Netflix and Amazon have proved a valuable addition for the industry and economy, unless the government intervenes to rebalance the playing field, for every Adolescence adding to the national conversation, there will be countless distinctly British stories that never get on our screens.”
This story appears in the May/June 2025 issue of Definition
