New Czech Audiovisual Fund opens up to supporting series and games

With the rebranding of the Czech Film Fund to the Czech Audiovisual Fund (CAF), the Czech Republic's audiovisual sector is on the brink of a significant advancement. The operation aligns with the new Audiovisual Act, effective from 1 January, marking the most substantial evolution of the fund since its establishment in 2013. Extending its support from films to series and games, CAF becomes a dynamic, diversified and forward-thinking institution, championing all forms of visual storytelling. With refreshed funding models, increased financial contributions from local and international stakeholders and a revamped production incentive structure, the goal is to attract global interest while bolstering local talent.

January 15, 2025

Under its new name, the Czech Audiovisual Fund continues to run the two aid schemes: selective support for audiovisual works and production incentives. Both, however, undergo several significant changes. This year’s Berlinale will mark the first international event where the revamped fund will be presented to the industry.

“The amendment to the Audiovisual Act is one of our key legislative proposals,” explained Martin Baxa, the Czech Republic’s Cultural Affairs minister. “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.”

“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” Martin Baxa, cultural affairs minister

New four-category framework forms basis of CAF’s selective aid scheme

While the Czech Film Fund primarily focused on traditional filmmaking aimed at theatrical distribution, the Czech Audiovisual Fund introduces, as its CEO Helena Bezděk Fraňková explains, “A new framework based on four categories designed to reflect the growing convergence of media sectors and the growing importance of audiovisual storytelling beyond cinema. 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.”

A key component of the restructuring is the creation of specialised expert councils for each support area, ensuring that funding decisions are based on the necessary knowledge and expertise.

The four categories reflect a holistic approach to supporting the audiovisual sector. They are:

Film - focus on feature-length fiction and documentary films alongside short and experimental films, consisting of script development, project development and production support, including support for minority co-productions.
Series - support to drama-, mini- and documentary series, both for development of projects and production.
Animation & Video Games – support to projects that meet cultural and artistic benchmarks, fostering innovation in storytelling, technology, and design.
Infrastructure - support to distribution, promotion and festivals, as well as to the technical modernisation of production facilities and workforce training.

Adjustments to the Production Incentive programme

The Czech Film Commission recently announced that the new audiovisual act also results in adjustments to the existing incentive structure, aimed at making the Czech Republic more attractive for both indigenous as well as international film productions.

Changes are slated for a two-phase rollout:

As of January 2025, production incentives are raised from 20% to 25%, while animated and digitally-produced projects see their rebate rate rise to 35%, provided no live-action shooting occurs in the Czech Republic.
The second phase, set to take effect on 1 January 2026, includes a streamlining of the project registration processes, a recalibration of minimum spend limits and running times in different project categories, and the introduction of an incentive for documentary series.

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.

Significant changes in CAF’s financing

The transformation also requires significant changes to the funding model, particularly as to how contributions to the fund are generated.

Parafiscal levies (these are taxes on a specific product or service, used to fund a particular purpose), which the government collects from cinema admission revenues, broadcast advertising and the distribution of TV broadcasts via cable or satellite, become 2% (instead of variable levies) across the board.

At the same time, a 3.5% obligatory assessment is introduced on the revenues of all streaming platforms that operate in the Czech Republic, regardless of their origin. They will be required to contribute to supporting Czech audiovisual content, combining the levy and Direct Investment Obligation (DIO). A minimum levy obligation is set at 1%, with the remaining 2.5% subject to the discretion of the streamer, resulting in various combinations of levy and DIO.

Under the new act, the amount collected from parafiscal levies will be matched by a contribution from the government. In the case of selective aid, the government's contribution will equal the total amount generated from levies. Additionally, its contribution towards production incentives will be six times the amount collected from parafiscal levies.

Czech Film Center and Czech Film Commission to expand activities

The transformation also influences both the fund’s international divisions: the Czech Film Center and Czech Film Commission, which will see their activities expand in line with the growth of the support and production incentives. The Czech Film Center focuses on promoting Czech works and talents abroad, co-operating with major international festivals and events; while the Czech Film Commission promotes the country, with its film infrastructure, as one of the world’s top destinations for audiovisual production.