Under proposed amendments to the Media Services Act unveiled by the Ministry of Culture, paid streaming platforms would have to invest 5 percent of their locally generated revenue back into the country's film industry.

Netflix, the world's largest subscription streaming service, is estimated to have around 140,000 users in Estonia, with plans starting at €7.99 a month and subscriber numbers continuing to grow.

Culture Ministry audiovisual field and digital culture adviser Karlo Funk said the measure could bring in significant additional funding each year.

"It could add roughly €1.5 million to €2 million to the market," Funk said.

He noted, however, that the requirement would also apply to domestic streaming platforms, many of which already commission or finance local productions.

The ministry says the proposal is intended to create a more level playing field between streaming services and traditional broadcasters while providing new funding for Estonian films and series.

Potential market-wide boon

According to Toomas Luhats, head of TV3 Group Estonia, the wider media and film industry would benefit from the change.

"Until now, the major streaming platforms have generated revenue here without having to contribute locally in the same way," he said. "From that perspective, I think it's fair."

Luhats said the requirement could also encourage international co-productions.

He said companies such as Netflix, Amazon, Apple TV and Disney+ may become more likely to acquire Estonian content or partner on productions, which could help raise production quality across the European market.

The bill is based on the EU's Audiovisual Media Services Directive (AVMSD) and could take effect in Estonia as early as 2027 or 2028.

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