Karhi scraps international streaming investment from media reform bill after Trump request

Communications Minister Shlomo Karhi says a clause in his controversial media regulation bill to require international streaming services such as Netflix and Disney+ to invest in Israeli productions has been removed at the request of US President Donald Trump.

Speaking during a heated debate at the Knesset, Karhi says Prime Minister Benjamin Netanyahu decided to remove the provision at Trump’s request, as part of ongoing economic negotiations between Israel and Washington.

The comment sparks outrage from opposition lawmakers and representatives of artists’ organizations who warn that exempting global streaming giants from funding local content will disadvantage Israel’s local film and television industry, as well as from the committee’s legal adviser and Justice Ministry representatives who argue that the move discriminates against local producers.

“The answer was unequivocal that the prime minister decided to remove it because it is a demand coming from the president of the United States,” says Karhi.

“What is this? Are we the 51st state?” exclaims Giora Walla, the head of the Israel Association of Cinema and Television Professionals (ACT). “Is this the legislature of the United States or of Israel? Whose interests are you serving? There won’t be original Israeli creation left here.”

Karhi responds that the prime minister made the decision as part of his “broader diplomatic considerations” and “that the partnership with the US president is [too important] for Israel’s survival,” amid the ongoing war with Iran.

“This is a US demand in economic negotiations between Israel and the United States,” he adds.