The idea of a levy on big international streaming companies such as Netflix and Disney+ is not new. In 2018 a revision to the European Union’s audiovisual media services directive permitted member states to introduce such a levy in order to support local television and film production. Several countries, including Spain, Denmark and France, have since introduced levies of between 2 and 4 per cent.
Plans were advanced under the previous minister for Media, Catherine Martin, to introduce an Irish levy, to be administered by the new Coimisiún na Meán, with at least 75 per cent of funds raised going to independent productions and a substantial portion set aside for Irish language programming. But Martin’s successor, Patrick O’Donovan, has now said this will not happen.
The decision will disappoint the audiovisual sector, which argues the streamers take revenues out of the Irish market and put very little back. But the Minister believes a a levy would impose an unfair additional burden on Irish subscribers.
That is a reasonable point at a time of economic uncertainty and cost of living pressures. It is harder to accept O’Donovan’s dismissive comment that he did “not see why” a levy should be introduced. He should look a little harder. The arguments in favour of the proposal are laid out in the report on the future of media commissioned by the last government. Since his remit extends to arts and culture, he should address the real questions that report raises about the future of distinctively Irish voices in a globalised media environment.
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O’Donovan also proposes to introduce amendments ensuring the Government has the final say on the matter, which he believes is currently not the case. Confusingly, Coimisiún na Meán states that under existing legislation, any scheme would need to be approved by the Minister. Some clarification is required.
Since taking up his portfolio in January, O’Donovan has acquired a reputation for glibness. That does not serve him particularly well. He would be better advised to spend some time reading himself fully into his new role.
