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Czech industry calls for increase in production incentives to 25%

Czech industry calls for increase in production incentives to 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 £450m ($580m, CZK13.5bn) in 2023, according to APA figures, down 12% on the record year of 2022. The APA said the main reason for the drop is a decline in international production whose revenues fell 18% to £310m ($390m,CZK 9.2bn)

The fall was largely the result of a year-long suspension of incentive registrations due to overloading of the system, as well as the US writers’ and actors’ strike, said the APA. 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 Šlajer.

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. Until now foreign VOD platforms such as Netflix and Disney+ have not contributed to the fund, while cinemas contributed 1% and Czech VOD platforms 0.5%. VOD platforms will also be obliged to invest at least 1.5% of their revenues from the Czech Republic in local content of their choice.

The amendment will also change the funding of the film incentive system. The annual budget for funding the incentives will now be linked to the financial performance of the Czech audiovisual industry.

The changes were approved by the government in June and are now passing 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.

Recent productions to film in the Czech Republic include Apple TV+’s sci-fi series Foundation: Emperor’s War, Amazon’s Wheel Of Time, and Lionsgate feature Ballerina starring Ana de Amas and Keanu Reeves, Robert Eggers’ remake of horror film Nosferatu for NBC Universal, and Thomas Vinterberg series Families Like Ours.

Amazon Prime Video series Blade Runner 2099 has just started filming in the country.


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