In an open letter on the streaming service's website, Viaplay Group writes that they are stopping all production of films and TV series in Denmark.
The decision is a protest against the new agreement that Danish filmmakers and producers entered into in January.
This means, among other things, that Danish filmmakers are entitled to a higher remuneration the more users a streaming service has.
According to several streaming services, this is a measure that has now made it more expensive to produce films in the country.
"Until we have reached a sustainable agreement, however, we see no other way than to put the development of further Danish projects on hold."
writes Viaplay Group.
- We are of course very sad.
It is a big setback for the producers, but also for the film workers, says Jørgen Ramskov, director of the Danish Producers' Association.
Third streaming service to leave
Viaplay Group is thus the third streaming service to stop its film production in Denmark in a short time, after state-owned Tv2 Play and American Netflix.
At the end of May, politicians in Denmark also agreed on a media agreement that forces all global streaming services operating in the country to set aside six percent of sales for a special cultural contribution.
The money will then be used to create domestic content.
The Danish decision is in turn based on an EU law from 2018 that requires global streaming services to have at least 30 percent European content in order to be licensed to operate in Europe.