The Irish Minister for Media, Patrick O'Donovan, intends to prevent a levy on streaming services such as Netflix. He argues that consumers are already paying sufficient amounts for entertainment through subscriptions and television licenses.
O'Donovan's stance is that individuals who pay for services like Netflix, Disney+, or Rakuten, along with the RTÉ television license fee, are contributing enough. Imposing an additional levy would be considered excessive.
Currently, the Coimisiún na Meán has the authority to impose levies without ministerial consent. However, O'Donovan plans to amend legislation, requiring government approval for any future levies. This would give the Minister final say over such charges.
The government's decision is partly influenced by its plan to provide substantial financial aid (€725 million) to RTÉ to address its financial challenges and ensure its continued operation.
While acknowledging that some European countries use similar levies to fund domestic programming, O'Donovan's position is that Ireland's circumstances differ, justifying the rejection of the proposed Netflix levy.
Minister for Media Patrick O’Donovan has said people using television-streaming services such as Netflix are “paying enough” and “I don’t see any reason to put a levy on them at the moment and charge them any more.”
Mr O’Donohoe was speaking as he prepares to bring proposals to Cabinet to block Coimisiún na Meán from imposing a levy on streaming services operating in Ireland.
The commission currently has the power to introduce a content levy without ministerial consent and there have been suggestions that the resulting funds could be used for independent TV productions in Ireland.
However, the Sunday Times reported that Mr O’Donovan is expected to bring proposals to Cabinet to amend legislation to ensure the commission cannot introduce a levy on streamers without Government approval.
On Sunday Mr O’Donovan said he is awaiting the outcome of discussions with Cabinet colleagues on the matter.
However, he added: “I think people that are paying for entertainment – whether it’s the RTÉ television licence or whether it’s the subscription to Rakuten or Netflix or Disney – quite frankly are paying enough and I don’t see any reason to put a levy on them at the moment and charge them any more to be quite honest about it.”
Asked on RTÉ’s The Week in Politics about other European counties like Denmark using such levies to fund native programming, Mr O’Donovan said: “It’s done by a lot of countries and it’s also not done by a lot of countries”.
He said there was “a lacuna in the law at the moment”, adding “the Minister should have the final say with regard to the imposition of a levy on the consumer and I’m going to redress that by way of the broadcasting Bill.”
Mr O’Donovan said: “People as I say are paying enough” and he also outlined how the taxpayer will be funding RTÉ directly to the tune of €725 million, as he put it “to keep the doors open”.
The taxpayer funding is part of measures aimed at supporting cash-strapped RTÉ in return for reforms at the national broadcaster
Mr O’Donovan said people are being asked to pay the €160 TV licence fee and those who can afford to do so are also paying for streaming services.
“I don’t see why I would impose a levy on top of those people,” he said.
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