A group of the biggest Danish production companies have written an open letter to netflix, Viaplay and other major streamers urging them to recommission local content or risk “a decimation of half the industry” after estimating the sector would lose up to DKK 1.5 billion ($200 million ).
Following the failure of negotiations with the Create Denmark union in January, Netflix, Viaplay, TV2, HBO Max, disney+ and Amazon Prime Video stopped ordering local Danish TV shows and films due to their high cost.
All of these streaming services rejected a framework agreed by Create Denmark and the Danish Producers’ Association nine months ago and the open letter called the content shutdown “not just a financial disaster, but also irresponsible behavior towards the public”. Danish industry as a whole”.
The issue concerns “the terms and extent of payment for the transfer of creative talent rights,” according to the letter.
He added: “Unhappiness does not just affect producers, but also crews and suppliers, as well as creatives, writers, directors, actors, cinematographers, production designers and editors – whose interests are managed by Create Denmark.”
The open letter was signed by the bosses of the Nation’s leading independents: Fremantle-backed Miso Film, ITV Studios-backed Apple Tree Productions, SAM Productions, Nordisk Film Production, SF Studios and Tall & Small.
While conceding that Danish content is “expensive” and that streaming services have “other options” – apart from TV2 which has a legal obligation to order locally – the letter urges SVoDs to “negotiate with a willingness to understand so that agreements can be made urgently.”
“The long-term consequences, if this situation continues, could be more serious than we wish,” he added. “A decimation of half the industry is not unrealistic. And this at a time when, together, we were growing more than ever. »
The letter predicted the industry’s loss between DKK 1 billion ($130 million) and DKK 1.5 billion ($200 million), anticipating that a loss of revenue of this magnitude would lead to “bankruptcies, layoffs, unemployment, and a film industry that’s been pushed back for years.”
Deadline has reached out to Netflix and Viaplay for comment.