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Czech industry calls for an increase in production incentives of 25%

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Czech industry calls for an increase in production incentives of 25%

Source: Focus Features


The Czech Republic’s Audiovisual Producers’ Association (APA) has called for the country’s audiovisual incentive to be increased to 25%, arguing its current 20% offer is not competitive enough for attracting enough international roductions.

The country’s audiovisual industry had a turnover of PS450m ($580m, CZK13.5bn) in 2023, according to APA figures, down 12% on the record year of 2022. The APA attributed the decline to a drop in international production revenues, which fell 18%, to PS310m ($390m) (CZK 9.2bn).

The fall is largely due to a year-long suspension on incentive registration The incentives system reopened in January 2024.

“The Czech Republic is now ‘open’ again and foreign productions have already started to return,” said APA chairman Vratislav Slajer.

The APA noted comparable rates in other European countries were much higher, pointing to Slovakia (33%), Poland (30%), Germany (30%) Hungary (30%) and Spain (30%).

Funding reforms

The APA has asked Czech minister of culture Martin Baxa to raise the country’s incentive o 25% as part of the forthcoming amendment to the Audiovisual Act.

The amendment will also transform the Czech Film Fund into the Czech Audiovisual Fund and extend selective support to include support for TV and VOD production, support for the gaming industry, and will see improvements to the film incentive mechanism.

As part of the amendment, cinemas, broadcasters and VOD platforms will all contribute 2% of their revenues as a levy to the Audiovisual Fund. The fund has been funded by cinemas and Czech VOD platforms. Foreign VOD platforms like Netflix and Disney+ did not contribute to the fund until now. The amendment will also affect the funding of the film incentives system. The government approved the changes in June. They are now being passed through the Czech parliament. The APA says it is crucial that the amended Audiovisual Act be adopted by the end of 2024 and come into force in January 2025.

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