On 27 May 2026, the Federal Cabinet approved the government’s draft bill for the Media Services Investment Obligation Act (MedienInvestVG). This decision also lays the groundwork for the release of additional federal funds for film funding.

According to the Federal Government, the reform involves an increase in funding for the DFFF I and II programmes and the GMPF to a total of 250 million euros. The funds had previously been subject to a spending freeze in the federal budget and can now be released.

Investment commitments for streaming services and broadcasters

At the heart of the draft bill is the introduction of an investment obligation for audiovisual media service providers. Under the government’s draft bill, streaming services and broadcasters will in future be required to invest at least eight per cent of their relevant turnover or programme costs, respectively, in European audiovisual works.

Where the investment ratio is higher, a so-called ‘opening clause’ is provided for, which is intended to allow for flexible deviations from detailed requirements under certain conditions.

Changes compared with the draft bill

According to the Federal Government, the government bill contains several amendments compared with the original draft bill. These include, in particular, the extension of the eligibility of grants: in future, EU grants and funds from the Council of Europe will also be eligible to count towards producers’ own contributions. Grants from the federal states therefore remain excluded.

Furthermore, the draft makes it clear that certain multipliers for cinema films and children’s films cannot be applied cumulatively.

Reactions from the industry: support for the objective, criticism of the details

In a joint statement, the Production Alliance, the Documentary Film Working Group (AG DOK), the German Film Academy and PROG Producers of Germany welcomed the bill’s aim of increasing investment in European audiovisual works and strengthening Germany as a production hub.

At the same time, the associations voiced criticism of the specific details of the draft. In particular, the proposed investment ratio of eight per cent is considered low compared with other European markets. The wording of the opening clause is also a point of discussion.

The associations also emphasise the importance of independent production companies and are calling for amendments to be made during the parliamentary process, particularly with regard to economic conditions and rights issues.

Further parliamentary debate

The draft bill will now be introduced into the parliamentary process. According to government sources, debates in the Bundestag will follow in the coming months.

At the same time, industry circles point out that the legislative process is under time pressure. This is due to the planned date of entry into force on 1 January 2027 and the ongoing European notification procedure.