Streaming sites face 2 pct tax to save cinemas

An omnibus bill proposing a 2 percent tax on digital streaming platforms is set to be introduced in Turkey's parliament this week, aiming to provide critical financial support to the nation's faltering cinema industry. Under the proposal, streaming services would be required to transfer a portion of their annual net sales to the Culture and Tourism Ministry. This measure is projected to generate approximately 417.1 million Turkish Liras annually, with additional revenue expected from a separate regulation on cultural assets, which could bring in up to 635 million liras in 2026. The decline in theater attendance has placed the film industry in severe distress. According to official figures, ticket sales dropped significantly from a pre-pandemic high of 77 million to just 29.7 million in 2025. This sharp decline has had a devastating impact on local production, leading many filmmakers to abandon traditional filmmaking due to financial pressures. Birol Güven, the head of the Cinema General Manager, described the current state of the industry as dire. During a parliamentary committee meeting, he stated that cinema is “in a really difficult situation; it is in intensive care.” The financial strain has been exacerbated by inadequate government support compared to European counterparts. In 2023, Turkey allocated only five million euros to support domestic filmmaking, whereas France invested 720 million euros and Greece contributed 79 million euros to their respective industries. As a result of this funding disparity, Turkish films have lost ground in the marketplace. Their market share against foreign releases has fallen from 60 percent to 40 percent. The new tax on streaming platforms aims to address this imbalance by providing direct financial assistance through the ministry’s enterprise account, enabling quicker deployment of funds by 2027 rather than waiting for further bureaucratic processes. Currently, average ticket prices for international releases stand at 250 liras, while domestic films cost 212 liras. Güven expressed concern over the limited time remaining for the industry to recover, stating, “I do not think cinema has that much time left.” The proposed tax represents a strategic move to reverse the trend of declining cinema attendance and restore confidence in the local film industry. By targeting streaming platforms, a major contributor to the shift away from theaters, the government hopes to create a more balanced entertainment landscape. However, the success of this initiative will depend on how effectively the funds are utilized and whether they can stimulate renewed interest in theatrical viewing among audiences.