Switzerland Film Act 2026: Streaming Obligations and the 4% Investment Rule

The Switzerland Film Act 2026 streaming obligations represent one of the most significant regulatory shifts for audiovisual platforms operating in or targeting the Swiss market. Under the amended Federal Act on Film Production and Film Culture, streaming services that generate revenue from Swiss audiences must invest approximately 4% of that revenue in Swiss film and series production, or pay an equivalent substitute levy to the Bundesamt für Kultur (BAK). This compliance requirement affects global subscription platforms, ad-supported streamers and hybrid services alike, creating new reporting duties, contractual dynamics and enforcement exposure. With the ongoing public debate around public-service media funding and draft communication-platform rules adding further urgency, platforms, producers and rights holders need a clear operational roadmap now.

Background: The Film Act Amendment 2026 and Swiss Audiovisual Law

Switzerland’s Federal Act on Film Production and Film Culture (Filmgesetz, FiG) has historically governed federal support for Swiss cinema and audiovisual creation. Until the recent amendment cycle, the Act’s funding mechanisms relied primarily on selective subsidies, automatic support triggered by box-office performance and co-production incentives administered by BAK. The regulatory framework did not impose financial obligations on foreign-headquartered streaming services delivering content to Swiss subscribers.

The Film Act amendment 2026 changes that balance. Driven by the same policy logic that underpins the EU’s revised Audiovisual Media Services Directive (AVMSD), the Swiss legislature determined that platforms profiting from Swiss audiences should contribute to the domestic production ecosystem. The amendment introduces an investment obligation for on-demand audiovisual services, colloquially referred to as the “Lex Netflix” provisions, requiring covered services to channel a defined share of Swiss-sourced revenue into qualifying Swiss productions. In parallel, the law establishes a Swiss content quota for streamers, mandating that a minimum percentage of their catalogues offered in Switzerland consist of European works, including Swiss productions.

Key Statutory Provisions Under the Amended Film Act

The core obligations are anchored in the amended articles of the FiG as published on admin.ch. The key provisions include:

• Investment obligation. On-demand audiovisual media services targeting Switzerland must invest at least 4% of their gross revenue generated in Switzerland in Swiss film production. Services may alternatively pay a substitute levy of the same amount to BAK, which then allocates the funds to production support.
• Catalogue quota. Covered services must ensure that at least 30% of their Swiss-accessible catalogue consists of European works, a figure aligned with the AVMSD benchmark, and must give those works adequate prominence.
• Registration and reporting. Covered services must register with BAK and file periodic declarations documenting their Swiss revenue, investment activities and catalogue composition.
• Enforcement powers. BAK may request audited accounts, conduct inspections and impose administrative sanctions for non-compliance.

These provisions apply alongside, not in replacement of, existing selective and automatic support mechanisms, meaning the overall funding landscape for Swiss audiovisual production has expanded substantially.

Who Is in Scope: Switzerland Film Act 2026 Streaming Obligations by Entity Type

The investment and quota obligations do not apply uniformly. The Film Act amendment draws a line based on the nature of the service, its territorial nexus to Switzerland and its revenue volume. Understanding these scope rules is the first compliance step for any streaming services operating in the Switzerland 4% investment framework.

Platforms With and Without a Swiss Legal Entity, Territorial Nexus Tests

The amended FiG applies to on-demand audiovisual media services that are either established in Switzerland or, critically, that target the Swiss market without a local legal entity. The territorial nexus test considers factors such as whether a service offers content in a Swiss national language, accepts Swiss-franc payments, runs Swiss-targeted advertising, or actively markets to Swiss consumers. Industry observers expect BAK to adopt an approach consistent with the AVMSD’s country-of-origin principle while reserving jurisdiction over services that circumvent the rules through establishment in non-EEA/non-Swiss jurisdictions.

In practice, this means a US-headquartered streamer with no Swiss subsidiary but millions of Swiss-franc-paying subscribers will likely fall within scope. The law addresses this by requiring such services to appoint a Swiss representative for reporting and enforcement purposes.

Thresholds, Turnover Tests and Group Liability

The implementing ordinance (Filmverordnung, FiV) specifies a minimum-revenue threshold below which smaller or niche VOD services are exempt from the full investment obligation. Services falling below this threshold may still be subject to the catalogue-quota requirement and simplified reporting duties. Group liability provisions mean that revenue from affiliated entities offering separate branded services to Swiss audiences may be aggregated for threshold purposes, an important consideration for media conglomerates operating multiple streaming brands.

How to Calculate “Revenue Generated in Switzerland”, Definition and Worked Examples

The revenue generated in Switzerland definition sits at the heart of compliance for streaming platforms in Switzerland. The amended FiG and its implementing ordinance define this as gross revenue attributable to the Swiss market, encompassing subscription fees, advertising income and any transactional revenue (pay-per-view, digital rentals) earned from users located in Switzerland. Revenue from merchandising, licensing of IP to third parties or sale of user data is generally excluded unless it is directly linked to the provision of the audiovisual service in Switzerland.

Where a global service does not maintain separate Swiss accounts, the law allows, and in practice requires, a pro rata allocation. BAK guidance indicates that services may apportion global revenue based on the ratio of Swiss subscribers or Swiss-attributed streams to total subscribers or total streams, provided the methodology is transparent, consistent and auditable. The chosen allocation method must be declared to BAK and cannot be changed without prior approval.

Three Worked Examples

These examples illustrate how materially different the obligation becomes depending on the business model. Platforms should conduct an internal data audit to identify all revenue streams attributable to Switzerland and map them to the statutory categories before their first reporting deadline.

What Counts as an Eligible Investment in Swiss Production

Not all spending in the Swiss audiovisual sector satisfies the investment obligation. The amended FiG and BAK guidance specify that qualifying investments must go toward the development, production or post-production of Swiss films or series, including co-productions where Switzerland holds an eligible minority share. Distribution-only expenditure, marketing costs and platform-internal content acquisition fees generally do not count unless they form part of a pre-sale or commission agreement with a qualifying Swiss production company.

Counting Rules and Audit Evidence

To receive credit toward the 4% obligation, a platform must demonstrate that the invested sums were paid to an eligible Swiss production entity registered with BAK, and that the underlying project meets the definition of a Swiss film or co-production under the Act. Eligible co-productions must comply with the frameworks administered by MEDIA Desk Suisse and the relevant bilateral or multilateral co-production treaties to which Switzerland is a party. BAK requires auditable documentation for each qualifying investment, including contracts, payment confirmations and project registration certificates. Platforms investing directly rather than paying the substitute levy should budget for the administrative overhead of maintaining this evidence trail.

Collection, Reporting, Audits and Enforcement, Compliance for Streaming Platforms in Switzerland

BAK is the designated authority for collecting declarations, verifying investment compliance and initiating enforcement. The practical compliance cycle under the Switzerland Film Act 2026 streaming obligations involves three phases: registration, periodic reporting and audit response.

• Registration. Covered services must register with BAK, declaring their service type, business model, Swiss nexus factors and chosen revenue-allocation methodology.
• Annual reporting. Each calendar year, registered services file a declaration of Swiss-sourced revenue, a schedule of qualifying investments made during the reporting period and catalogue-composition data. Supporting documentation, including audited revenue figures and investment contracts, must be submitted alongside the declaration.
• Audit and verification. BAK may request additional documentation, commission independent audits or conduct on-site inspections. Industry observers expect initial enforcement to focus on the largest platforms, with progressively broader audit coverage as BAK builds institutional capacity.

Enforcement Mechanisms: Fines, Levies and Licence Implications

Where a service fails to meet the investment obligation, BAK may impose the substitute levy, effectively collecting the 4% as a charge rather than allowing platform-directed investment. The Act also provides for administrative fines for late or inaccurate reporting, and persistent non-compliance could, in principle, result in orders restricting the service’s availability in Switzerland. For services established outside Switzerland, enforcement may rely on cooperation agreements, Swiss-representative obligations and, in the most extreme cases, blocking orders, although the likely practical effect will be reputational pressure and commercial negotiations long before technical enforcement measures are invoked.

Implications for Producers and Rights Holders, Commercial and Contractual Steps

The Film Act amendment 2026 creates meaningful new leverage for Swiss producers. As platforms seek qualifying production investments to satisfy their obligations, demand for eligible Swiss projects, and the contractual terms governing those investments, will shift. Producers should view this as both an opportunity and a compliance exposure point. Rights holders and content licensors also face implications for producers and rights holders who supply content to platforms active in Switzerland, as clearance obligations and reporting requirements may cascade through the licensing chain.

Key Contractual Adjustments

Producers negotiating with platforms should consider incorporating the following provisions into co-production, commission and licence agreements:

• Investment-credit allocation clause. Specify which party receives credit toward the 4% obligation for expenditures under the contract. Where a platform commissions a Swiss series, the agreement should confirm the platform’s right to count the commissioning fee as a qualifying investment, and the producer’s obligation to maintain BAK-eligible project registration.
• Audit and open-book accounting. Grant the platform (or its auditors) access to production accounts sufficient to demonstrate that funds were applied to eligible Swiss production costs. Reciprocally, producers should require platforms to disclose the revenue data underlying the 4% calculation to ensure the proportional investment is correct.
• Clawback and adjustment mechanism. If a project loses its BAK-eligible status (e.g., due to changes in production location or crew composition), the contract should specify whether the producer must refund the platform’s investment or source a replacement qualifying project.
• Reporting cooperation warranty. Both parties warrant that they will cooperate with BAK reporting requests and provide timely documentation, with indemnities for losses arising from the other party’s failure to comply.
• Rights-clearance confirmation. The producer warrants that all underlying IP rights, including those relevant to digital distribution in Switzerland under the framework outlined by the Swiss Federal Institute of Intellectual Property (IGE), are cleared for the platform’s exploitation window.

These clauses are conceptual starting points. Each agreement will require tailoring to the specific deal structure, the platform’s preferred accounting methodology and the applicable co-production treaty framework.

Implementation Timeline and Transitional Issues

The timeline for the Switzerland Film Act 2026 streaming obligations has evolved through multiple legislative and consultative stages. Understanding key dates is essential for platforms calibrating their first reporting cycle and for producers positioning projects to attract platform investment.

Early indications suggest that BAK has adopted a staged approach, allowing platforms a transitional adjustment period in the initial reporting cycle. Platforms that proactively engaged during the consultation phase may benefit from informal guidance on methodology choices before formal audit scrutiny begins.

Practical Compliance Checklist: 12 Immediate Steps for Streaming Platforms and Producers

1. Determine whether your service falls within the scope of the amended FiG by assessing territorial nexus factors (language, payment currency, advertising targeting).
2. Identify all revenue streams attributable to Switzerland, subscriptions, advertising, transactional fees, and map them to the statutory revenue categories.
3. Select and document a pro rata revenue-allocation methodology if Swiss-specific accounts are not maintained.
4. Register with BAK and appoint a Swiss representative if no local legal entity exists.
5. Establish internal accounting codes to track qualifying Swiss production investments separately from general content-acquisition spend.
6. Audit existing and pipeline production contracts for BAK-eligible status (Swiss production entity, project registration, co-production treaty compliance).
7. Insert investment-credit, audit-rights and clawback clauses into all new commission, co-production and licence agreements.
8. Verify that at least 30% of the Swiss-accessible catalogue comprises European works and implement prominence measures.
9. Build reporting templates aligned with BAK filing requirements, including audited revenue summaries and investment schedules.
10. Brief finance and legal teams on the substitute-levy mechanism as a fallback if direct investment targets cannot be met in time.
11. Conduct a rights-clearance review, in particular digital exploitation rights for content distributed in Switzerland, against the framework maintained by IGE.
12. Set calendar reminders for annual reporting deadlines and schedule an internal pre-filing review at least 60 days before each submission.

Conclusion

The Switzerland Film Act 2026 streaming obligations mark a structural shift in how audiovisual content is funded and regulated in the Swiss market. Platforms, producers and rights holders who act early, aligning revenue tracking, contract terms and reporting workflows to the new requirements, will be best positioned to turn a compliance burden into a competitive advantage. For tailored guidance on your specific obligations, explore the Global Law Experts lawyer directory to connect with qualified Swiss media and entertainment law practitioners.

Sources

1. Federal Act on Film Production and Film Culture (admin.ch)
2. Bundesamt für Kultur (BAK), Quota & Investment Obligation
3. SWI swissinfo.ch, Tax on Streaming Giants
4. Chambers / TMT 2026, Switzerland Practice Guide
5. MEDIA Desk Suisse, Co-Production Guidance
6. IGE, Copyright on the Internet
7. Digital Policy Alert, Policy Change Tracker