Tuesday, February 4, 2025

Israeli TV Industry Faces Crisis as Creators Demand Netflix Investment

In a letter to Netflix executives, a consortium of industry leaders, screenwriters, and professionals emphasized the urgent need for a regulatory framework requiring foreign platforms to reinvest a portion of their revenues into Israeli content

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Israeli television creators have issued a stark warning about the future of the local entertainment industry, urging international streaming platforms, particularly Netflix, to invest in original Israeli productions.

In a letter to Netflix executives, a consortium of industry leaders, screenwriters, and professionals emphasized the urgent need for a regulatory framework requiring foreign platforms to reinvest a portion of their revenues into Israeli content.

The letter, signed by prominent figures including Lior Tamam, CEO of the Screenwriters Guild, Directors Guild chair Eliran Elya, and screenwriter Daniel Lappin, comes amid growing concerns that the lack of investment could lead to the collapse of Israeli television as a hub of original storytelling.

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Shrinking Industry, Shrinking Content

“The local Israeli industry is shrinking by tens of millions of shekels annually. Soon there will be nothing left for you to buy and broadcast, soon there won’t be second seasons to invest in,” the letter stated, highlighting the crisis gripping the country’s entertainment sector.

The Israeli industry, which has produced internationally acclaimed series such as FaudaShtisel, and Tehran, is at risk of stagnation without external funding.

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Unlike local providers Hot and Yes, which are mandated to reinvest 8% of their revenue into Israeli productions, global streaming giants such as Netflix, Cellcom, and Partner currently face no such obligation.

Israeli Communications Minister Shlomo Karhi has been working on a broadcasting bill for over 18 months that would require international content providers to invest between 2% and 4% of their local revenue in Israeli productions.

The bill is under review by the justice and communications ministries, but industry leaders are calling for immediate action.

Netflix’s Role in the Debate

Netflix has played a role in bringing Israeli content to global audiences, acquiring shows such as Beauty Queen of Jerusalem and developing the fully Hebrew-language original series Bros.

It has also partnered with the Sam Spiegel Film School to foster new talent. However, critics argue that these efforts are insufficient to sustain a thriving local industry.

“In 2024, Netflix launched Bros, its first fully Hebrew and Israeli original production, but this is not enough,” said Lappin.

“The income of Hot and Yes is being reduced because of Netflix, and that means they’ll be producing less original content. [Netflix is] taking a portion of the Israeli market, reducing original Israeli content, and walking away scot-free. It’s intolerable.”

Netflix executives, including Larry Tanz, Vice President of Content for Europe, the Middle East, and Africa, visited Israel in January to discuss the Broadcasting Law with industry leaders and government officials.

While Netflix has not commented on the matter, estimates suggest it has over 1.5 million subscribers in Israel—equivalent to the combined subscriber base of Hot and Yes.

A Call for Legislative Action

Many Israeli creatives believe the industry should adopt a model similar to Europe, where regulations mandate international streaming platforms to invest in local productions. “The Israeli industry won’t exist if there is no regulation,” Tamam warned.

“We see how the creative work is going down the drain. There won’t be anyone else doing Israeli TV. Yeah, we’re great, but you need investment to do creative work in the local industry.”

With Israeli creators urging legislative action, the fate of the country’s television industry now hinges on whether the government enforces funding obligations for global streaming giants. Without intervention, the golden era of Israeli TV may soon come to an end.

 

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members

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