The State Audiovisual Fund received a total of 387 million CZK from audiovisual levies this year. Levy collection rose by 70 per cent year-on-year, with the new funding system introduced by the amendment to the Audiovisual Act taking full effect for the first time.
The new rules have increased the percentage rates of the levies and expanded the range of entities obliged to contribute. In addition to cinemas, television broadcasters and retransmission operators, the obligation now also applies to global streaming platforms operating in the Czech Republic.
“The result of this year’s collection of audiovisual licence fees is an important piece of news for the entire sector. The fund’s revenue determines the scope for future support for the Czech audiovisual sector and film incentives,” said Veronika Slámová, Director of the State Audiovisual Fund.
According to the fund , a record CZK 787 million is set to be allocated to support the Czech audiovisual sector next year , thanks to revenue from these levies .
Streaming platforms contributed less than expected
Although streaming services also took part for the first time this year, their contributions fell short of the fund’s original expectations. According to the fund, this is mainly due to the use of statutory exemptions and discounts for operators who invest directly in the Czech audiovisual industry.
“Revenue in the streaming platforms category fell short of initial estimates. Some made use of statutory exemptions, whilst others took advantage of a discount due to their direct investment in the Czech audiovisual industry,” said Ms Slámová.
The fund also pointed out that four streaming operators have not yet submitted the relevant returns and have been asked to rectify the situation. According to the fund, administration is also more complex because many operators of global platforms are not based in the Czech Republic.
However, according to the fund, lower revenue from streaming services was offset by higher fee collections from rebroadcast operators. The overall result thus exceeded initial estimates.
Revenue will affect film support and incentives
The amount of audiovisual licence fees collected has a direct impact on the volume of funds the state provides to support Czech film production. For selective support, the state subsidy is set at a ratio of at least one to one in relation to revenue from licence fees.
For film incentives, from 2028 state support will be calculated as six times this base amount; for 2026 and 2027, a transitional rate of seven times this base amount applies.
According to the fund’s management, this is the first year of operation for the new system, which will need to be further fine-tuned. “It is logical that fine-tuning requires greater care and attention. We expect the system to gradually stabilise,” added Veronika Slámová.
Source: mediaguru.cz