The Czech audiovisual industry experienced a significant decline in 2024, mainly due to a temporary loss of competitiveness in film incentives. The industry's total turnover fell by 27% year-on-year to just under CZK 10 billion. The biggest decline was in foreign production, which fell by 40% because the original level of incentives (20%) was not enough to compete with other European countries. This is according to the annual report of the Association of Audiovisual Producers (APA).
On the contrary, growth was reported in the video-on-demand (VOD) and advertising production segments. Czech VOD production reached a record volume of CZK 381 million, confirming the growing interest of viewers in domestic content on streaming platforms. The newly transformed State Audiovisual Fund, whose budget will double from January 2025, is also beginning to play a key role in supporting Czech production.
The advertising industry returned to growth after a slight decline in 2023, achieving a turnover of almost CZK 2.5 billion, surpassing even the record year of 2022. There was significant growth in custom advertising creation, which increased by CZK 400 million to CZK 1.4 billion. This increase was mainly driven by an increase in the number of shooting days (+40%) and the economic recovery. However, foreign budgets are still on average three times higher than domestic ones.
Turnover development in individual segments (in CZK million); Source: APA member companiesAccording to the APA, 2024 was a transitional period during which key reforms to the audiovisual production support system were prepared. The amendment to the Audiovisual Act, which came into force in January 2025, brings, among other things, an increase in incentives to 25%, and up to 35% for animation and digital production. This should restore the Czech Republic's competitiveness and attract back foreign productions that moved elsewhere last year.
Czech animation has also achieved significant success, winning prestigious awards at international festivals thanks to a combination of talent, support and international co-productions.
Changes in the financing of public television, regional subsidy programmes and efforts to strengthen international presence through representation in Los Angeles are creating conditions for new growth. According to the APA, the Czech audiovisual sector continues to have considerable potential. However, it will be crucial to establish long-term sustainable and fair conditions for creators.
You can read the full report here: APA Report 2024
Source: mediaguru.cz