Article 13(2) of the revised Audiovisual Media Services Directive ('AVMSD') provides that Member States may require media service providers under their jurisdiction to make a financial contribution to the production of European works.
To exercise this option under the AVMSD, section 159E of the Broadcasting Act 2009 (as amended) currently provides the independent media regulator, Coimisiún na Meán, with the option to impose a content production levy on media service providers (i.e. providers of broadcasting and video on demand services) to fund a scheme (termed ‘the European works scheme’) to support the production of European works, including Irish works. Any such scheme funded from the levy receipts would require Ministerial approval.
Coimisiún na Meán appointed consultants Nordicity & Saffrey LLP to undertake research and make recommendations in relation to the feasibility of an audiovisual content levy and fund. Stakeholders were consulted throughout the feasibility report process. The report was received by my Department on 29th January 2025 and was published by Coimisiún na Meán on 8th May 2025.
Recommendation 2 of the report proposes that Ireland adopt a variable rate levy combined with a gradual increase mechanism, whereby launch rates would be set at 0.5% of gross turnover on ad revenue earned, 0.5% of pay-TV subscription revenue, and 3% of VOD revenue, with these rates gradually increasing to 1%, 1% and 5%, respectively.
The consultants set out estimates in their report that the implementation of such a mechanism would likely yield an initial €12.7m annually in levy proceeds at the launch rates. If the rates were ultimately increased to the ceiling rates proposed by the consultants, they estimated that it could potentially yield €22.5m annually in levy proceeds.
The report in full can be accessed here: www.cnam.ie/read-the-feasibility-study-on-the-audiovisual-content-levy/
I consider that the introduction of a content levy risks placing an additional financial burden on Irish households already experiencing cost-of-living pressures, particularly in the context of recent international developments. It is for that reason the Broadcasting (Amendment) Bill includes an added layer of protection for the Irish consumer by providing that Coimisiún na Meán may only impose a content production levy on broadcasters and video-on-demand providers following a direction of the Minister. I have no intention of issuing such a direction until I am satisfied that a content levy would not impose an undue burden on Irish households.
The Broadcasting (Amendment) Bill provides that RTÉ will be required to spend at least 25% of its public funding on content commissioned from the independent production sector. RTÉ and TG4 will also be excluded from receiving direct public funding from the Media Fund, in order to ensure that all funds go to independent producers and commercial media outlets.
As Minister, I fundamentally believe in supporting the Irish independent production sector, as is reflected by the many ongoing supports provided to the sector through grant funding from Screen Ireland and Coimisiún na Meán’s Sound and Vision Scheme, as well as the Section 481 film tax relief.
I will continue to engage with all relevant stakeholders to ensure that the independent production sector continues to be appropriately supported in the longer term.
