The February report begins with Germany which is moving to strengthen its domestic audiovisual sector by introducing new investment requirements for streaming platforms and television broadcasters, while nearly doubling state funding for film production. Under the proposed rules, platforms will be required to invest at least 8% of their net local turnover in locally made content, with higher investments allowing the inclusion of non-English language films and series produced in Germany. At the same time, artificial intelligence (AI) is rapidly reshaping global entertainment industries. Disney announced a $1 billion equity investment in OpenAI and a three-year licensing agreement that will allow users to create AI-generated video content featuring more than 200 characters from Disney, Marvel, Pixar, and Star Wars via OpenAI’s Sora platform. In addition, the music industry is undergoing a similar transformation. Universal Music Group has partnered with Nvidia to develop “Music Flamingo”, an AI model capable of analyzing songs by structure, harmony, and emotional progression, with the stated aim of enabling more contextual and responsible music discovery. Finally, major online platforms are also accelerating AI adoption and global expansion. Amazon is developing AI tools to reduce costs and streamline film and television production, while Netflix reported strong growth to 325 million subscribers, driven by a rapidly expanding ad-supported tier.
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