Netflix spent $9,145 in May on lobbying efforts in Israel, according to documents submitted to court by JLM Public Policy, which provides lobbying services in Israel for the streaming giant. Although the figure reflects Netflix’s expenses for only one month, companies typically purchase lobbying services on a fixed retainer basis. Netflix’s annual lobbying expenses in Israel can therefore be estimated at about $110,000.
The documents were submitted as part of an administrative petition filed by the Hatzlacha nonprofit against the Israeli Public Broadcasting Corporation, Kan and Netflix, demanding that the two parties disclose the details of their agreement. About three years ago, Kan signed an agreement with Netflix under which the public broadcaster’s original series became available on the streaming platform to viewers in Israel.
The Netflix hit 'Squid Games' airs on the service in Israell
(Photo: Courtesy of Netflix)
The agreement drew criticism from figures in the local content industry. Producers claimed they were not receiving sufficient royalties for broadcasts on Netflix, while actors, voice actors and musicians said they were receiving no royalties from the company at all.
Against this backdrop, Hatzlacha sued Kan and Netflix last month, seeking to compel them to disclose the full agreement between them, including appendices, additions, amendments and updates. “The right to receive information from government authorities is one of the foundations of a democratic system of government and is required by the very functioning of government authorities in promoting the public interest,” the petition argued. “This is all the more true in a matter of public importance.”
From 'Squid Games'
(Video: Courtesy of Netflix)
Because Netflix is a foreign company with no local branch, Hatzlacha sought to serve the petition through JLM, describing it as the company’s local representative. In a response filed with the court last week, JLM argued that it does not serve as Netflix’s representative for the purpose of receiving legal documents, among other reasons, because it provides lobbying services to a Netflix subsidiary registered in the Netherlands, and those services are unrelated to the subject of the petition.
As part of its response, JLM also attached a receipt issued to Netflix for services it provided in May. According to the receipt, Netflix paid $7,750 that month for “regulation and strategy (policy)” services provided by JLM, totaling $9,145 including VAT.