Foreign streaming platforms to contribute to new Czech audiovisual fund

Representatives of all distribution platforms reached an agreement with the Culture Ministry that will be part of an upcoming audiovisual law.


Written by ČTK Published on 04.07.2023 07:30:00 (updated on 03.07.2023) Reading time: 1 minute

All platforms engaged in the distribution of audiovisual content in Czechia, including foreign video distribution companies such as Netflix, will allocate 2 percent of their revenues to the newly planned State Audiovisual Fund, Culture Minister Martin Baxa announced in a press briefing today.

The agreement, which was reached earlier today, involved representatives from the platforms, producers, and the Ministry of Culture, with Prime Minister Petr Fiala in attendance. This agreement will be a crucial component of a forthcoming audiovisual law expected to be enacted by 2025, Minister Baxa said at the Karlovy Vary International Film Festival.

"One key aspect of the agreement is that all platforms, both domestic and foreign, will contribute 2 percent of their revenues. This applies not only to Czech platforms, which have previously made lower contributions but also to foreign platforms, which have not contributed at all," Baxa said.

In addition to the financial contributions from audiovisual providers, investments in Czech cinematography will also receive support. The proposed law aims to extend these contributions to encompass small-screen platforms, including television and internet-based audiovisual projects, while also targeting animated productions.

Baxa said the meeting participants also addressed the current suspension of film incentives. He noted that some projects, although certain of their non-implementation, are still utilizing funds that could have been allocated to other projects.

This year, a total of CZK 1.4 billion has been allocated for film incentives in Czechia, with half of the amount from cinema operators, commercial television networks, and similar entities, while the other half comes from the state. However, the outdated administration system for these incentives has led to situations requiring the suspension of their disbursement. Consequently, the proposed law includes a provision that stipulates a six-month deadline for project implementation.

The Culture Ministry, according to Baxa, is actively seeking a legal solution to restructure the fund's status and thereby unlock the blocked incentives. He expressed optimism that this could be accomplished within a matter of weeks or, at the latest, by the end of the year.

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