While streaming platforms like Netflix, Apple TV+, and Amazon Prime Video don’t deal in physical goods and therefore aren’t directly affected by global import tariffs the ripple effects of international trade policies are starting to hit them in different ways.
In the UK, streaming services are under pressure from lawmakers. The influential Culture, Media & Sport Committee (ICMS) has revived its call for a 5% levy on revenues from all international streaming services operating in the country. The idea behind this proposed “streaming tax” is to protect local film and TV production, ensuring that British creators and cultural programming aren’t overshadowed by big-budget Hollywood imports.
The ICMS argues that without such a levy, the UK risks becoming the “Hollywood of Europe”, with homegrown stories losing screen time to American hits. However, platforms like Netflix strongly oppose this move.
In response, Netflix released a statement emphasizing its investment in the UK market. The company pointed out that its UK production hub is the largest outside of North America and said it wants to “keep it that way.” However, it warned that any new taxes or levies will likely result in increased subscription costs for consumers.
“In an increasingly competitive global market, it’s key to create a business environment that incentivizes rather than penalises investment, risk-taking and success,” the streaming giant said. “Levies diminish competitiveness and penalize audiences who ultimately bear the increased costs.”
While the UK’s levy is a domestic issue, the broader global economic climate is also causing waves in the streaming industry especially due to US trade policies under former President Donald Trump.
Earlier this year, Trump imposed a 125% tariff on imported goods from China, directly affecting companies like Apple, which manufactures most of its devices, including iPhones and Apple TV hardware, in China. Though a pause was announced on reciprocal tariffs, the baseline 10% import tariff remains active for many goods from Europe and other regions.
This has led to soaring prices for electronics, with iPhone costs exceeding $2,000 in some cases. As consumers tighten their belts, their streaming budgets are likely to shrink, forcing them to choose carefully which platforms they’re willing to pay for each month.
Paul Erickson, an analyst at research firm Omdia, “You might start getting more strategic about how that budget is spent on streaming subscriptions.”
Apple, which owns Apple TV+, has seen its stock take a major hit — losing more than 18% of its value in 30 days. With its market cap previously around $3 trillion, that’s a significant blow not just to the company but to the overall U.S. economy. Economists are warning that these developments could trigger a global recession.
This means streaming services could face a double hit: higher operational costs due to trade tensions and lower consumer spending due to economic uncertainty.
The future of streaming is being shaped not just by content and competition, but by international policy and politics. From UK levies to US-China tariffs, platforms like Netflix, Apple TV+, and others are operating in a highly unpredictable environment.
While companies may absorb some costs, price hikes for consumers are inevitable if these pressures continue. The next few months will be crucial as platforms decide whether to adapt their pricing models, cut spending, or shift strategies to remain competitive without alienating users.