On May 5, 2026, the German federal government published to certain stakeholders the ministerial draft of the Media Investment Obligation Act (Medieninvestitionsverpflichtungsgesetz – “MedienInvestVG” or the “Act”). The draft introduces a statutory obligation for on-demand audiovisual media service providers (“VoD platforms”) to invest in the production and distribution of European audiovisual works, with the aim of strengthening the German and European film economy. The legislation implements the option granted to Member States under Article 13(2) of the revised EU Audiovisual Media Services Directive (AVMSD) and follows similar regimes already in force in France, Italy, and other EU Member States.
The MedienInvestVG will significantly affect global streaming platforms, as well as German broadcasters’ on-demand offerings. Below, we summarize the key new legal provisions of the draft.
The Act applies to media service providers offering on-demand audiovisual media service in Germany, including providers established abroad where the service targets users in Germany. A foreign service is regularly deemed to target Germany where advertising or sales measures are specifically aimed at German consumers and the main language of the service is German, or where the service’s content and commercial communications are specifically directed at users in Germany.
A “media service provider” is defined by reference to editorial responsibility—i.e., effective control over compiling and making available an on-demand catalog. An “on-demand audiovisual media service” is a non-linear service with a main purpose of providing audiovisual content to the public for individual viewing at a time chosen by the user.
Practical implications: The jurisdictional hook is broad. International VoD services that offer German-language content, run German-targeted marketing, or otherwise direct their offerings at German consumers will fall within its scope, even if established outside Germany.
In-scope providers must invest annually in the production and distribution of European audiovisual works.
Revenues and costs relating to current news reporting on daily events, sports programming, and in-house productions (Eigenproduktionen) are excluded from the calculation base.
The investment obligation only starts from the beginning of the third calendar year in which the provider first offers its VoD service in Germany—a grace period designed to accommodate market entrants.
The draft imposes granular sub-quotas to steer the composition of the investments:
Sub-Quota | Minimum Share | Description |
New works | At least 60% | Must be spent on the production of “new” European works—i.e., works not yet completed at the time of investment. |
German cultural imprint | At least 80% | Must go into European works with a “German cultural imprint,” defined as works produced in the German original language or works funded with tax-financed federal funds. |
Independent producers | At least 70% | Must be invested in European works made by independent film producers—i.e., producers not controlled by the commissioning media service provider. A rebuttable control presumption applies where the provider holds at least 25% of capital, participations, or voting rights (including attribution to affiliated companies, such as those seated outside Germany). |
To encourage specific types of production, the draft provides for favorable crediting:
The 8% obligation does not apply to providers with less than EUR 10 million annual net turnover in Germany, or providers that devote less than 2% of their annual offer volume to making audiovisual works publicly available.
Upon application, the FFA may allow deviations from the sub-quotas or fully exempt a provider in justified exceptional cases where the service's type or theme makes compliance unsuitable e.g., specialized genre, language, or cultural community services.
The draft defines a broad catalog of eligible investments, including:
Non-eligible investments include investments in European works with unconstitutional or illegal content, or content with a pornographic or violence-glorifying focus, as well as productions excluded from the assessment base under the news/sports/in-house production carve-outs.
A particularly significant—and controversial—element of the draft is the mandatory rights hold back regime. To be credited toward the 70% independent-producer sub-quota, investments in European works must comply with the following:
Exclusive rights may only be transferred to the media service provider for a limited first exploitation period, the maximum duration of which depends on the (independent) producer’s equity share:
Producer’s Equity Share | Maximum Exclusive License Period |
Below 9% (with essential underlying rights contributed by producer) | 7 years |
9% – 30% | 7 years |
>30% – 50% | 5 years |
>50% | 3 years |
Tax-financed federal funding is treated as the producer’s equity share for the purpose of calculating these thresholds.
The rules permit the provider to negotiate a “first offer” clause (Erstanbietungsrecht) for the acquisition of rights for further (subsequent) periods on appropriate market terms.
A provider may deviate from the statutory investment-steering rules—including the sub-quotas, eligible investment categories, rights hold back regime, and evidence requirements—by concluding an agreement with representative producer associations. To qualify, the provider must:
Such sector agreements require the blessing of the Federal Film Funding Association as well as the approval of the State Minister for Culture and Media. While this tool might facilitate greater flexibility for media service providers, it is to be expected that negotiations concerning the terms of the sector agreements would be lengthy
Competent Authority
The Filmförderungsanstalt (FFA – German Federal Film Board) is designated as the authority responsible for implementation and supervision.
Film levy payments under the FFG and other payments to federal/state film funding institutions are deductible from the investment obligation.
Providers must provide extensive annual information and supporting documents to the FFA—including net turnover, subscriptions/usage metrics, program costs/volumes, contracts evidencing compliance with rights reversions, and investment breakdowns—generally by July 31 of the following year, with key revenue/usage data confirmed by an EU/EEA/Swiss auditor. The FFA may use third parties to verify data.