Czech Industry Advocates for Increased Production Incentives to 25%.
The Czech Audiovisual Producers’ Association (APA) has called for an increase in the country’s audiovisual incentives from the current 20% to 25%, stating that the existing rate is insufficiently competitive for attracting international productions.
According to APA data, the Czech Republic’s audiovisual industry generated £450 million ($580 million, CZK 13.5 billion) in 2023, representing a 12% decrease from the record year of 2022. The APA attributes this decline primarily to a reduction in international production, which saw revenues drop by 18% to £310 million ($390 million, CZK 9.2 billion).
The decrease was largely due to a year-long suspension of incentive registrations caused by system overload, compounded by the US writers‘ and actors‘ strike. The incentives system was reinstated in January 2024.
APA chairman Vratislav Šlajer emphasized that the Czech Republic is now welcoming foreign productions again, with several already returning.
The APA highlighted that other European countries offer significantly higher incentive rates, with Slovakia at 33%, and Poland, Germany, Hungary, and Spain all at 30%.
Funding Reforms
The APA has appealed to Czech Minister of Culture Martin Baxa to increase the incentive to 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 support to TV and VOD productions, the gaming industry, and improve the film incentive mechanism.
As part of the amendment, cinemas, broadcasters, and VOD platforms will contribute 2% of their revenues to the Audiovisual Fund. Previously, foreign VOD platforms like Netflix and Disney+ did not contribute, while cinemas contributed 1% and Czech VOD platforms 0.5%. Additionally, VOD platforms will be required to invest at least 1.5% of their Czech Republic revenues in local content.
The amendment will also revise the funding of the film incentive system, linking the annual budget to the financial performance of the Czech audiovisual industry.
Approved by the government in June, the changes are now under consideration by the Czech Parliament. The APA stresses the importance of adopting the amended Audiovisual Act by the end of 2024, to be effective from January 2025.
Recent productions filmed in the Czech Republic include Apple TV+’s sci-fi series “Foundation: Emperor’s War,” Amazon‘s “Wheel of Time,” Lionsgate‘s “Ballerina” starring Ana de Armas and Keanu Reeves, Robert Eggers’ remake of “Nosferatu” for NBC Universal, and Thomas Vinterberg’s series “Families Like Ours.” Additionally, Amazon Prime Video’s “Blade Runner 2099” has just begun filming in the country.
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