Reforms to the Czech Republic's Audiovisual Act, a new set of taxes and direct investment obligations will be required for streaming platforms.
Streamers working in the Czech Republic will pay a 2% tax of their revenues into the Czech Film Fund, which invests money in Czech films and TV series.
In addition, streaming giants will also be required to spend an additional 1.5% of their revenues directly on Czech content that they choose to commission, or they can contribute an additional 1.5% to the Czech Film Fund for a total contribution of 3.5%.
This is the first time that foreign production companies will have to contribute to this system.
However, they have also increased incentives.
The Czech Republic offers a 20% rebate on Czech spend, with a CZK 150m (£5.4m) cap. Productions like the third series of Apple TV’s Foundation (currently filming), season 2 of Amazon’s Wheel of Time, AMC’s Interview With A Vampire, Robert Eggers’s remake of Nosferatu, and Netflix’s Extraction 2 have filmed in the Czech Republic.
The total incentives budget will be calculated at six times the amount of money raised by the streamer/TV/cinema levies and the government’s mirror funding (estimated to come to CZK2bn (£72m) a year) an increase of £14 million compared to 2023.
Other European countries already have taxes on streamers. Germany has a 1.8-2.5% tax, and is currently working towards higher levies and a direct investment obligation as well.
France has the highest rate of required contributions for local and European productions. They mandate investment obligations, ranging from 15-25% of turnover, and a levy of 5.15%.