Netflix tax: Streaming giants to fund Czech film industry

The Letter for the King | Photo: Netflix / Julie Vrabelová
Making of The Letter for the King. Photo: Netflix/Julie Vrabelová

From 2025, international streaming platforms will be required to contribute to the Czech audiovisual industry. This new mandate is part of a forthcoming law introduced by the Ministry of Culture.

The contribution will be set as a percentage of annual revenues in the Czech market. Streaming services such as Netflix, Disney+, HBO Max, SkyShowtime and others will contribute 2% of their local revenues to the production of Czech films and series.

The same conditions will apply to all other entities in the audiovisual market, such as commercial TV broadcasters, cinemas or Czech video services such as Voyo. The current fees vary according to the type of business - cinemas, for example, pay more than Czech VOD services.

"Given the broad scope of the working group that prepared the amendment and the different needs of the main players in the Czech audiovisual scene, the discussions were often very challenging. However, thanks to a constructive approach and the ability to agree on common interests, the most important issues were resolved," said Minister of Culture Martin Baxa.

In addition to the 2% levy, streaming platforms will have another obligation. They will have to invest an additional 1.5% of their Czech revenues in local content through direct investment.

"Direct investment will consist of own production, co-production, acquisition and international localisation of Czech content (for example, dubbing a Czech series on a platform for foreign markets)," the Association of Audiovisual Producers explained. Streaming services will have complete freedom to choose the projects they wish to support.

Streaming platforms whose business model does not work with local content will have the option of contributing to the future Audiovisual Fund instead of making direct investments, at a rate of 3.5% (basic 2% + 1.5% as a substitute for unrealised direct investments). 

At the same time, the government has committed to unblocking the film incentive system within weeks. To achieve this, it will update the status of the State Film Fund, eliminating the need to wait for a new law. Producers have warned that without this, the Czech Republic could miss out on many opportunities in the film industry.


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