Austria’s film funding crisis deepens as Netflix resists new streaming levy

Filmmakers face a cash crunch as Austria overhauls its funding system—with Netflix fighting back. Can a new streaming tax save local cinema?

, and Administrator

2026 January 10 . 10:05 PM

1 min read

In this image there is a conference in which there are people sitting in chair and listening to the... — In this image there is a conference in which there are people sitting in chair and listening to the people who are on the stage. It seems like an event in which there is a conversation between the media people and the owners. At the background there is a big hoarding and the wall beside it.

Austria’s film funding crisis deepens as Netflix resists new streaming levy

Austria’s film funding system underwent significant changes in 2025, starting with a freeze on submissions for key programmes like ÖFI and FISAplus, which caused uncertainty for filmmakers. Netflix opposed a proposed law targeting its operations, warning of unfair treatment and potential legal issues. The year began with ÖFI and FISAplus temporarily halting new applications, and the ÖFI location incentive for feature films was eliminated, leaving a reduced budget of €39 million for selective funding only. Delays in fund distribution by the Finance Ministry further complicated matters, but most planned productions eventually secured the necessary money.

A working group was established to explore new funding models, including a proposed streaming levy of three to seven percent on revenue earned in Austria. However, discussions on investment obligations for streaming platforms have stalled, with no concrete progress reported. Culture Minister Andreas Babler (SPÖ) suggested closing budget gaps by requiring streaming services, particularly international firms, to invest in local film production. Looking ahead, 2026 will see film funding drop to just €54.93 million, far below the previous €80 million total, with no reserves to cover the shortfall.

The changes to Austria’s film funding system have created financial pressures for producers and filmmakers, with a smaller budget and stricter allocation rules. The next working group meeting in late January will determine whether new measures, like streaming levies or investment rules, can be introduced to address these challenges.