Europe fights back to protect its culture, film, and TV sector

Since Donald Trump took office in January, several policy signals and rhetorical moves from the U.S. government have triggered ripple effects for producers, financiers, and broadcasters in Europe and the Nordic region.

The Trump administration announced a plan to impose a 100% tariff on all films produced outside the U.S., arguing that foreign production is hurting the American film industry. While the implementation details remain unclear, the threat alone has unsettled international production planning.

The US explicitly criticised Europe’s so-called “cultural exception” (the concept that audiovisual works are not mere commodities), and has pushed for reforms to EU audiovisual media regulation in the “Audiovisual Media Services Directive”.

The US, through the administration, also flagged the rules that European countries impose on streaming platforms - such as requiring local investment and quotas - as “barriers” or trade issues.

Finally, since the US is signalling a shift toward prioritising domestic production (or at least becoming more hostile toward foreign production), Nordic producers who rely on co-productions, US market access, or global streaming and distribution partnerships may feel less certain about the future.

Possible threat to streaming levies

To address the wave of uncertainty, two major European interest groups, CEPI (European Audiovisual Production Association) and EPC (European Producers Club), have stepped up to defend the European production industry against threats, challenges, and potential issues.

One topical issue is the US administration classifying “streaming levies” as trade barriers, while the Nordic countries see streaming levies as an important new incentive to support local production.

Denmark implemented the levy in January 2025, requiring streaming service providers to pay a base rate of 2% of their Danish revenues. Norway plans to introduce the investment obligation in 2026, requiring streamers to invest at least 4% of their annual revenue in Norwegian-language audiovisual works. Finland intends to implement a levy on streamers in 2028. In Sweden the idea is actively being discussed.

Iceland is preparing a draft law that would require direct investments in local productions or have streamers contribute up to 5% of their Icelandic subscription revenue annually to the Icelandic Film Centre.

No backtracking on AVMS principles

Two weeks ago, the European Parliament voted on a revision of the AVMS (Audiovisual Media Services) framework, which has been challenged by the US government. The outcome was eagerly awaited by the industry, as the Trump administration has promoted trade policies (tariffs, leverage in trade negotiations) that threaten to weaken Europe’s regulatory tools for supporting and protecting its cultural, film, and TV sectors - tools such as content quotas, investment obligations, subsidies, and more.

“The European Producers Club warmly welcomes the resolution adopted by the European Parliament on 23 October on the Audiovisual Media Services Directive obligations in the transatlantic dialogue,” Managing Director Julie-Jeanne Régnault, European Producers Club, told NFTVF, and reiterated the EPC’s position:

“At a moment when the AVMSD is under pressure and attacks from US top leaders, from global streaming platforms at the national level, and from intense lobbying efforts in Brussels, we are grateful to the European Parliament for firmly defending Europe’s cultural sovereignty. It’s a clear call upon the European Commission to stand behind European works and cultural diversity in the audiovisual sector, and it’s both timely and essential.”

On 23rd October, the parliament adopted five recommendations, which included stressing that the measures laid down under the AVMSD constitute a legitimate regulation in the public interest. It aims to safeguard cultural diversity by encouraging the production and dissemination of European works, and to protect freedom of expression, media pluralism, and democratic values. Any backtracking on the AVMSD principles could undermine the European cultural model, particularly amid intense international competition in the audiovisual media sector.

Régnault also noted that Denmark has implemented EU rules that require both local and global streaming services to financially support Danish and European film and TV production, helping fund independent creators and local-language content.

Concerns about the proposed Agora EU

At the same time, the European Producers Club, along with more than 20 other producers’ organisations, has concerns about the AgoraEU programmes, which refer to a proposed European Union regulation establishing the AgoraEU programme for the period 2028-2034.

The EPC warns the proposal could represent “a risky turning point for the future of independent audiovisual creation in Europe”. The MEDIA Programme has been an EU success story for 35 years, according to both the CEPI and the EPC.

“It now risks losing its identity in the proposed Media+ within AgoraEU. It is being diluted, without a dedicated budget. It no longer specifically refers to independent producers. This could undermine decades of EU support for creative diversity,” the EPC stated in a press release.