“The amendment to the Audiovisual Act is one of our key legislative proposals,” explained Martin Baxa, the Czech Republic’s Minister of Culture. “After a year and a half of hard work and in-depth discussions with key players in the audiovisual sector, we have achieved a wonderful thing which will bring fundamental change and significantly alter the current reality of the audiovisual industry, ensuring financial resources to secure its future. Our goal is clear: to support high-quality Czech audiovisual content and Czech filmmakers, and to help our industry make itself noticed abroad.”

A decade of evolution

The Czech Film Fund, a cornerstone of the country’s cinematic landscape, is about to undergo the most significant transformation it has seen since its creation in 2013. The change, culminating in the Czech Audiovisual Fund (CAF), marks a pivotal moment in the evolution of cultural policy and government support for the Czech film industry. The foundation of the Czech Film Fund was preceded by a period of strategic planning and legal reform. The year 2013 saw the introduction of a new legislative framework, aimed at modernizing the country’s approach to financing and fostering the audiovisual sector. This shift was motivated by growing recognition of the film industry’s cultural and economic potential. At its core, the reform sought to replace the previous model of state subsidies with a more agile and autonomous funding institution.

Prior to 2013, Czech cinema relied on a state-administered subsidy system that many in the industry viewed as outdated and insufficiently responsive to the challenges of a rapidly changing global audiovisual market. The establishment of the Czech Film Fund was the result of years of advocacy and preparation, spearheaded by policymakers and industry stakeholders who sought to align domestic support structures with European norms and practices. Over the past decade, the fund has played a critical role in supporting Czech cinema, from supporting emerging talent to cofinancing blockbuster international projects and attracting notable number of international service productions.

New financial structure

The transformation of the Czech Film Fund into the Czech Audiovisual Fund will involve significant changes to the funding model, particularly in how contributions to the fund are generated. Parafiscal levies (that is, taxes on a specific product or service, used to fund a particular purpose, here to support the Czech audiovisual industry)—collected by the state from cinema ticket revenues, broadcast advertising, and retransmission of television broadcasts through cable or satellite channels—will be 2 percent across the board, instead of the varying percentages assessed now.

At the same time, a 3.5 percent obligatory assessment will be introduced on revenues of streaming platforms that operate in the Czech Republic, including international giants like Netflix, Disney+, and Amazon Prime. (Previously, only domestic platforms such as Voyo and Prima+ were made to contribute, and did so at the rate of 0.5 percent.) As a result, all platforms operating in the Czech Republic will be required to contribute to the support of Czech audiovisual content creation, with the levy and direct investment obligation combined into a single charge. (The new obligatory levy on streaming will be 1 percent, while the remaining 2.5 percent will be divided between levy and direct investment, with the ratio between them decided by the streamer.)

This approach aims to ensure equity in the contributions made by content distributors, regardless of their origin, fostering a unified framework to support local content. Under the new act, the amount collected from parafiscal levies will be mirrored by a contribution from the state budget: the same amount as the levies for selective support and six times the amount of the levies for production incentives. The additional revenue from international and domestic streaming platforms that will result from these changes is expected to increase the Czech Audiovisual Fund’s budget substantially, allowing it to offer greater financial support to the projects it backs.

Broadening the scope of support

“The new framework is based on four categories designed to reflects the growing convergence of media sectors and the growing importance of audiovisual storytelling beyond cinema," explains the fund´s CEO Helena Bezděk Fraňková "The change also responds to the evolving needs of the global audiovisual industry. At the same time, the increased maximum percentage for production incentives will allow the Czech audiovisual sector to grow positively,”

Fundamental to the incoming reform is a strategic realignment of the fund’s mandate to encompass a broader range of audiovisual content. While the Czech Film Fund was primarily focused on traditional filmmaking aimed at theatrical distribution, the newly established Czech Audiovisual Fund embraces support for series and video games as well. This move reflects the growing convergence of media sectors and the increasing importance of audiovisual storytelling beyond cinema.

To this end, the Czech Audiovisual Fund will introduce a forward-looking framework that categorizes support into four categories:
1) Film; 2) Series; 3) Animation & Video Games; and 4) Infrastructure.
This structure is designed to reflect the evolving needs of the global audiovisual industry, positioning the Czech Republic as a leader in both traditional filmmaking and emerging creative media.

The Film category will continue to anchor the fund’s offerings, with a focus on feature-length fiction and documentary films, while also embracing short and experimental films. This category includes support for script development, project development, and production, including support for minority coproductions for feature-length and short fiction, as well as documentary and experimental films.

Recognizing the ascendancy of episodic content, the Series category will offer new support to drama series, miniseries, and documentary series, both for development of projects and production. In this way, the Czech Audiovisual Fund will embrace a critical segment of contemporary audiovisual production, ensuring its appeal to creators working across formats.

The introduction of an Animation & Video Games category marks a bold step forward for the fund, acknowledging gaming, now a dominant cultural and economic force, as a critical component of modern audiovisual media. This category will support projects that meet cultural and artistic benchmarks, fostering innovation in storytelling, technology, and design. By including video games, the fund not only diversifies its portfolio but also elevates the Czech Republic’s standing in the rapidly expanding global gaming industry. The inclusion of animated content in this category arose from discussions with key players in the sector and underlines both the specificity of animation and the complexity of its creation. Too, it is worth pointing out that animation has traditionally been the crown jewel of Czech filmmaking.

Infrastructure, the fourth category of the CAF’s new framework, underscores the commitment to building a sustainable and future-ready audiovisual ecosystem. This category will provide support to distribution, promotion, and festivals, but also the technical development and modernization of production facilities, from animation studios to postproduction houses. Investments in new technologies and workforce training are also prioritized, ensuring that the Czech Republic will continue to attract international projects while equipping local talent with the skills required to excel in a competitive industry.

Together, these four categories reflect a holistic approach to supporting the audiovisual sector. By embracing both traditional and emerging media, the Czech Audiovisual Fund positions itself as a dynamic force in global cinema, television, gaming, and beyond.

Enhanced incentives

The transformation also includes adjustments to the existing incentive structure. Production incentives have been raised from 20 percent to 25, making the Czech Republic more attractive for both domestic and international film productions, while animated and digitally produced projects will see their rebate rate rise to 35 percent, provided no live-action shooting occurs in the Czech Republic. The incentive cap is increased to CZK 450 million (approximately €18 million) per project.

The new incentive programme is slated for a two-phase rollout, carefully conceived to balance continuity with modernization while broadening the scope of support for audiovisual projects.

The first phase, launching on January 1, 2025, introduces targeted adjustments aimed at enhancing the existing framework. Changes include increased incentive rates for specific project categories, providing an immediate boost to the competitiveness of the Czech Republic and its filmmakers and producers. The focus in this phase is on strengthening the system without disrupting ongoing projects, ensuring that the fund continues to operate seamlessly as it adapts to new priorities.

The second phase, set to take effect on January 1, 2026, will bring comprehensive changes including updates to project administration processes, a recalibration of minimum spent limits and runtimes in different project categories, and the introduction of an incentive for documentary series.

Industry reactions to these modifications have been largely positive. Producers and representatives from major platforms have acknowledged that these adjustments are crucial in order to maintain the Czech Republic’s appeal as a filming destination, especially in the face of competition from other European countries with similar rebate systems. By offering more competitive rates, the Czech government aims to attract a broader array of productions, ensuring that the country remains a viable choice for large-scale international projects.

Governance and organizational changes

The transformation of the Czech Audiovisual Fund also includes several administrative changes intended to support its expanded scope and increased responsibilities. A major aspect of the restructuring is the establishment of distinct councils of experts for each area of program support, ensuring that funding decisions are made with the necessary knowledge and expertise. This adaptation aims to improve the quality and relevance of the support provided by the fund, aligning with the diverse needs of different types of audiovisual projects.

In line with these shifts, the Czech Audiovisual Fund is also positioning itself for greater transparency and efficiency. New statutory regulations and governance structures are being developed to streamline the decision-making process and enhance accountability. The emphasis on transparency is intended to build trust among stakeholders, including producers, platforms, and the broader public, ensuring that the expanded resources are managed effectively and in the best interest of the Czech audiovisual industry. Another vital adjustment is an expansion of the fund’s staff, to enhance its operational capacity and improve management as the number of projects eligible for support increases.

Meanwhile the fund’s international divisions—the Czech Film Center and Czech Film Commission—will expand their activities, in line with the growth of support and production incentives. While the film center focuses on promoting Czech works and talents abroad, cooperating with major international festivals and events, the film commission promotes the country, with its film infrastructure, as one of the world’s top destinations for audiovisual production.

The transformation of the Czech Audiovisual Fund positions the Czech Republic as a dynamic and adaptable hub for international film production, poised to cater to diverse creative needs. By introducing new categories of support, enhanced rebate rates, simplified processes, and a new funding model, the fund is opening its doors to a wider range of projects, from high-budget animation and postproduction-heavy endeavors to feature films seeking cost-effective yet top-tier facilities.

These changes not only strengthen the Czech Republic’s global appeal, but also reaffirm its role as a forward-thinking partner for filmmakers navigating the complexities of modern production.