RTÉ News: No 'Netflix levy' without ministerial approval, says O'Donovan

Story from RTÉ News:

The so-called 'Netflix levy' will not be introduced without ministerial approval, Minister for Media Patrick O’Donovan has said.

The announcement is one of six key amendments Mr O’Donovan has detailed as he confirmed the Government will approve the revised General Scheme of the Broadcasting (Amendment) Bill.

Other amendments include an obligation on RTÉ to spend 25% of public funding by law on independent productions.

Coimisiún na Meán is to increase that with agreement from the minister, in the context of the three-year reviews of the adequacy of public funding.

This was drawn up by the Future of Media Commission and was then reflected in RTÉ 's ‘New Direction' strategy.

Regulation of RTÉ and TG4 is to extend beyond radio and TV content to include podcasts and webpages.

Mr O'Donovan said this will all enhance value for money, accountability and transparency in RTÉ and TG4 and provide for greater levels of funding for independent producers.

The bill will also ensure the roll-out of the content production levy - or so-called 'Netflix levy' - is subject to ministerial approval, Mr O'Donovan said.

Industry experts say the levy on streaming services is vital to support the creative industries.

The levy policy was designed to raise money to fund indigenous Irish productions.

It has taken root against a background of growing concerns in domestic TV industries across the world that big streamers like Netflix and Disney+ are skewing the market for localised companies which is affecting homemade productions.

The European law which allows member states to introduce a content levy was passed in 2018.

The purpose of the law was to ensure that streaming services and pay TV services that take money out of Europe could be required to invest a portion of that money back into local creative talent to create local stories for local audiences.

Ireland legislated for the levy in 2022 but never introduced the levy.

Regarding criticism over his decision not to impose the content levy, Mr O'Donovan said that he is conscious of impending rising prices as a result of tariffs.

"I'm very conscious of the fact that any levy that is likely to be imposed on a streaming service by Coimisiún na Meán will be passed on to consumers," he said.

Speaking on RTÉ's Drivetime programme, the minister said he was not satisfied that it was the right time to action the levy.

"I want to be satisfied that in return for any imposition of any levy that the climate is right to do that, and at the moment, I don't think it is."

The CEO of Screen Producers Ireland, Susan Kirby, said that they "welcome" the legislation that enables 25% of RTÉ's public funding to be specifically invested in Irish independent production companies and programming.

Ms Kirby went on to say that though that "it is very disappointing that the Minister is saying no to the immediate introduction of the content levy".

She is calling for the "immediate publication of the viability report commissioned by Coimisiún na Meán which explores the levy situation".

RTÉ's Director General Kevin Bakhurst said that RTÉ's five-year strategy confirms RTÉ's commitment to "increase its investment in Ireland's independent creative sector".

Mr Bakhurst said that RTÉ will "significantly increase our commissioned spend by 2027... across the whole island of Ireland".

He added that RTÉ "already produces a range" of public service programming in partnership with Ireland's independent sector, such as "all of our drama apart from Fair City (KIN, The Dry, Smother, Hidden Assets, Blackshore, and so much more)".

He also pointed to other non-drama programmes that are made in collaboration with independent production companies such as Dancing With The Stars, Room To Improve and Ear to the Ground.

Mr O'Donovan said direct funding under the Media Fund is solely for independent producers and commercial media outlets and there is a requirement for greater transparency in funding of contractors.

The amendments announced by Mr O'Donovan also provide for the anonymised disclosure by RTÉ and TG4 of employee benefits and contractors’ remuneration.

Also addressed in the recommendations is the amendment that excludes RTÉ and TG4 from applying for direct public funding under the Media Fund.

Mr O’Donovan added that this was relevant as the broadcasters are already in receipt of public funding to fulfil their statutory public services obligations.

© RTÉ 2025.