05/03/2012 - More sources for financing of local films mean more money, up to 300 million Czech crowns (€12m), Czech PM says

The Czech government has passed a law on audiovisual works and the support of cinema. It will change an existing norm from the 1990s and thus the financing of domestic films and other projects. Up to now, one Czech crown (approx. €0.05 EUR) from each sold cinema ticket went to the fund, while now 1% of the ticket price will head the same way. With the average admission price at 112 CZK in 2011 this means only a minor increase, but may be crucial for the future.

However, commercial TV stations should also start supporting the fund. According to PM Petr Necas (pictured), the income from private stations should be as high as 150 million crowns per year. Moreover, the fund can now expect an extra 20 to 30 million annually from online services and the safekeeping of films. Satellite and cable TV providers – since they also benefit from screening films, which they will now indirectly support – should also guarantee an income.

“If we take into account that the fund is supposed to digitize a number of films under its conduct in the coming years, digitalize local cinemas, support screenplays, production, distribution and festivals, more sources had to be found,” said culture ministry spokeswoman Eva Ticha. The ministry defends the new regulation by stressing that rules for audiovisual culture should be united and more funds for financing Czech cinema had to be found.

Furthermore, the ministry stressed that the new law updates the regulations from the 1990s in not being related to tax incentives (which were finally introduced in 2010) or the ACTA agreement. The law now needs approval by the Czech parliament, where the governing coalition has a comfortable majority.