Romania introduces new contributions for providers of on-demand audio-visual media services

Romania recently adopted Law no. 190/2022 (“Law 190”), which transposes the Audio Visual Media Directive and introduces changes to Government Ordinance no. 39/2005 regulating new contributions to the Romanian Cinema Fund. The newly created additional contributions are as follows:

• a monthly contribution of 3% from the price of audio-visual works downloaded through data transmission services, including Internet or phone, for suppliers of on demand audio-visual mass-media service providers;
• a contribution of 4% from the revenues obtained by on-demand audio-visual service providers from individual transactions or subscriptions for viewing audio-visual works through data transmission services such as Internet or phone.

The “revenues” the 4% contribution to the Cinema Fund will be calculated from for EU-based providers is limited to revenues obtained in Romania alone. The new contributions do not apply to providers with a turnover of less than EUR 65,000 in the previous fiscal year, or whose audience is below 1% of the total number of subscribers nationally for data transmission services ensuring broadband Internet access.

According to the new law, providers of on-demand services may opt to directly finance a film production for up to 40% of the amount owed to the Romanian Cinema Fund upon the request of the film producers and after prior notice to the Romanian National Cinema Centre. Only certain film productions, however, are eligible for such direct financing.

Although the first filing and payment deadline will be the 25 August 2022, some of the practicalities of the actual filing and payment are not completely clear at this time. In addition, the wording of Law 190 creates further confusion and ambiguity concerning the timeline for the filing and payment of the 4% contribution, since there is conflicting filing and payment information for the 4% contribution in different parts of the act.

For further information on this law and the Romanian media industry, contact your CMS client partner or local CMS expert: Cristina Popescu.