The Czech Republic’s audiovisual sector is about to take a major step forward with the transformation of the Czech Film Fund into the Czech Audiovisual Fund, driven by the adoption of a new audiovisual act, which took effect on January 1, 2025.

The vision for the new Czech Audiovisual Fund is to become a diversified, future-proof institution that uplifts all forms of visual storytelling in an increasingly dynamic and evolving media landscape. By expanding beyond traditional film production to include support for series and video games, the fund aims to adapt to shifting consumer preferences and technological advances. With updated funding models, increased financial contributions from both local and international platforms, and a modernized production incentive structure, the goal is to attract international interest while providing robust support for local talent. Ultimately, by nurturing projects across a broader range of media, the objective is to strengthen the country’s audiovisual industry.

“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.”

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.

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.

“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.

All details available here.