Higher incentives have brought the Czech Republic back into the game, and audiovisual turnover in 2025 rose above CZK 11,3 billion. Now, however, the incentives are on hold once again

Higher incentives have brought the Czech Republic back into the game, and audiovisual turnover in 2025 rose above CZK 11,3 billion. Now, however, the incentives are on hold once again, and stability is also threatened by uncertainty surrounding Czech Television.

The current situation in the Czech audiovisual industry shows just how decisive an influence film incentives have on the stability of the entire market. According to figures from the Audiovisual Producers’ Association (APA), the increase in incentives pulled the domestic audiovisual industry out of the downturn that had been signalled for 2024, when production volume fell below the 2021 level to CZK 9.9 billion. In 2025 the turnover of the entire audiovisual industry reached CZK 11.3 billion, an increase of 14.5% on the previous year. Yet even the highest budget in the history of the Czech Audiovisual Fund – CZK 2.4 billion last year (of which up to CZK 1.6 billion went to film incentives) – did not cover the debt accumulated over previous years, and above all the enormous demand from abroad. Moreover, since the end of March 2026 the submission of new applications for registration in the incentive scheme has once again been closed.

Turnover of foreign production, Czech films and series, and advertising

The main reason turnover grew year on year by 14.5% is undoubtedly the rise in foreign production, which increased by more than CZK 1 billion (around 20%), from CZK 5.5 billion to more than CZK 6.6 billion. The production of Czech films and series recorded a very modest rise of just under 6%, from almost CZK 1.9 billion to almost CZK 2 billion – CZK 110 million in absolute terms. Advertising rose by CZK 202 million, from an original figure of almost CZK 2.5 billion to CZK 2.7 billion overall. APA currently brings together 177 independent production companies, making up 90% of the market.

“The Czech audiovisual industry is in a strong ‘starting’ position. The reform of the Czech Audiovisual Fund should stabilise the incentive scheme, increase its volume and strengthen support for original domestic production. It also introduces, for the first time, an obligation for VOD platforms to invest in local content. The developing domestic television output and the investment of private broadcasters are increasing the reach of Czech audiovisual content abroad. Foreign co-productions and sales, in particular, represent further major growth potential for the Czech audiovisual industry. The incentive scheme is temporarily on hold; according to our information, it should reopen over the summer,” says APA Chairman Vratislav Šlajer. He also warns: “What is alarming, however, is the situation surrounding public service media. The government’s amendment abolishing the licence fees for Czech Television (and Czech Radio) is creating great uncertainty – not only by jeopardising the independence of the public service media, which would be subordinated to the state budget, but also through the threatened return to the pre-2024 budget and a reduction in Czech Television’s funding by CZK 1 to 2 billion a year.”

Outlook for the Czech audiovisual industry

The reformed Czech Audiovisual Fund (CAF) launched its first calls in September 2025; in its first year of operation, up to October 2026, it will distribute almost double the amount of support awarded in previous years – approximately CZK 550 million for development and production. This is crucial and long-needed support for domestic output, which now also includes television production. The system as a whole stabilised following the reforms of the CAF and the funding of Czech Television, but it has been thrown into uncertainty by the suspension of incentives and, above all, by the new uncertainty over the funding of public service television. If Czech Television loses CZK 1 to 2 billion, as the government’s proposed amendment altering the funding of public service media implies, investment in original domestic film and television production will fall – by an estimated CZK 800 million to CZK 1 billion, according to APA. This will affect debut films, high-quality television production with international reach, documentaries, animation and content for children and young people. Over the next three to five years, this would be reflected not only in a marked decline in the turnover of the Czech audiovisual industry, but also in a weakening of its international competitiveness and a slowdown in the emergence of much-needed new talent and new genres. At the same time, film and animation production already under way – which, under the approved memorandum, Czech Television should be actively supporting – would stagnate. On the positive side, the level of investment by private broadcasters has stabilised, and their digital platforms have enjoyed success, giving many appealing, audience-focused projects a chance and strengthening the quality of Czech audiovisual output. In the event of a shortfall in Czech Television’s investment, however, this will not cover the full potential of Czech production, particularly co-productions and the formats mentioned above, such as documentary and animation.

Foreign production

Although the Czech government increased the annual allocation for incentives in 2023 and 2024, it was only the much-needed transformation of the Czech Film Fund that offered any real prospect of market stability. From January 2025 this brought, among other things, an increase in incentives to 25%–35% (the higher percentages applying to animation and digital production) and the involvement of VOD platforms in financing the system. In 2025 the audiovisual industry thus caught its breath again where foreign contracts were concerned, which helped to halt the outflow of foreign productions to more competitive European destinations, where it is often possible to recover more than 30% of the funds spent. This positive trend in the Czech Republic was interrupted by a decision of the Czech Audiovisual Fund of 27 March 2026 to suspend this incentive scheme owing to the exhaustion of the funds allocated for the year. The halt on the submission of new applications will adversely affect the audiovisual industry’s results for 2026 and, in the longer term, for 2027 as well. It is also important to recall that the film industry does not, for the most part, provide a living for filmmakers themselves: according to CAF and APA data, 60% of all funds spent – for example by foreign productions on Czech territory – flows into related non-film sectors. APA appreciates the dialogue with the CAF’s management and its efforts to find a way to reopen the scheme as quickly as possible.

Foreign projects shot in the Czech Republic

Over the past year, following the increase in the incentive, it was primarily small and medium-sized projects that went into production in the Czech Republic. Among the most significant were the film Resident Evil and the series The Age of Innocence for Netflix and Ride or Die for Amazon MGM Studios, for which production services were provided by the Czech production company Stillking. A number of projects were also made for European television broadcasters and streaming platforms, for example the third season of the series Empress for Netflix Germany, produced by Mia Film. At the same time, preparations began during the year for major international projects whose filming is getting under way in 2026. These include the continuation of the sci-fi saga Foundation, the series Monarch: Legacy of Monsters for Apple TV+ and the miniseries based on Dan Brown’s latest novel, The Secret of Secrets (Netflix). Other significant projects shot by foreign film and television productions in the Czech Republic over the past year include the sci-fi series Blade Runner 2099 (Amazon MGM Studios) and the feature film Frankenstein (post-production work for Netflix).

Advertising

Following last year’s strong recovery in the advertising market, growth continued in 2025, though at a noticeably slower pace. Whereas in 2024 the total volume of advertising production had increased, after an earlier decline, by roughly CZK 400 million and passed the CZK 2.5 billion mark for the first time, this year it rose by only a little over CZK 200 million, to a total of CZK 2.7 billion. This figure essentially tracks the rise in market prices and, once ever-increasing overheads are taken into account, companies’ real profits are in fact falling. The slowdown comes at a time of fundamental change across the entire advertising industry. Production companies are feeling ever more strongly the effects of the rise of generative artificial intelligence and of the growing share of agencies’ in-house productions, which are gradually taking over part of the work. A detailed analysis shows that, as a result of these trends and the overall globalisation of the market, the number of advertising clients is genuinely declining. At the same time, a significant portion of marketing budgets is shifting from television advertising to other communication channels, particularly digital media and social networks, which is reducing the volume of commissions carried out in television production. These trends pose a significant threat to independent production companies and to open creative competition in the market, and their influence can be expected to strengthen further in the coming years – with a decline, rather than growth, more likely in the years ahead. AI is currently transforming a whole range of fields.

Regions

Czech and Moravian regions have supported the audiovisual industry with a record sum of over CZK 109 million to date. The largest share of funding came from the Film Voucher programme in the Moravian-Silesian and Ústí nad Labem Regions under the Just Transition Operational Programme. The Ústí programme was closed early in the year because its funds had been exhausted. Despite strong interest from producers, it will unfortunately not continue – following a decision by the regional leadership – and will not even provide the outstanding funding for projects that have already been shot, even though the Ústí region has long been among the most sought-after locations for Czech and foreign crews alike. The Moravian-Silesian Region, by contrast, wishes to continue the programme, which would mean tens of millions of CZK more for film and television projects shot in the region. Shortly after the festival, the Film Voucher programme is also opening for the first time in the Karlovy Vary Region, with an allocation of approximately CZK 27 million and rules similar to those in the regions mentioned above. The South Moravian Region and the City of Brno have returned to the support map with CZK 19 million, having created a joint audiovisual support programme within the region’s grant schemes after the South Moravian Foundation Fund scaled back its activities. Last year, new programmes also opened in the Olomouc and Pardubice Regions, which had previously awarded only individual grants. Other regions, such as Vysočina, increased the volume of funding in their calls. That leaves only the Central Bohemian and Liberec Regions on the map of the Czech Republic without a grant programme, though they too provide funding for film production on an individual basis.

AgoraEU

The European Union has put forward a proposal for the AgoraEU programme, which from 2028 is intended to bring together support for culture, the media and civil society within the EU’s new multiannual budget, currently being commented on by the Union’s member states. In March, APA submitted to the Czech Ministry of Culture its position on this proposed programme and at the same time offered expert cooperation in the further consideration of the programme and in defining specific negotiating requirements for the talks in the Council of the EU. The Association supports, for example, maintaining a separate, stable and adequately protected MEDIA+ pillar; it also proposes strengthening the protection of independent producers, restoring the emphasis on cultural diversity, securing a minimum budget allocation for MEDIA+ and extending support to both production and distribution.

Animation successes

In 2025 Czech animation achieved great success and once again confirmed its long-standing, stable and strong position on the international scene. The most notable triumphs were achieved by the animated co-production feature Tales from the Magic Garden (Pohádky po babičce), which earned European Film Award nominations for Best Animated Feature Film and Best European Film, and by the short film I Died in Irpin, which won the Best of the Best award at the Emile Awards – the “European animation Oscars” – and made the shortlist for the Academy Awards in the Best Animated Short Film category. The film Hurikán [lit. ‘Hurricane’] won considerable international recognition, again being included on the Oscar shortlist in the short-film category. Other projects also fared well, including the co-production Joko, which won the award for best music at the prestigious Annecy festival and received nominations at the European Animation Awards. Short animated films from FAMU scored successes too, among them Wolfie (Vlček), which was among the finalists in the animation category of the Student Academy Awards.

Film and documentary successes

The greatest international success of Czech cinema in 2025 was the co-production documentary Mr Nobody Against Putin (Pan Nikdo proti Putinovi), which won the Academy Award for Best Documentary Feature. The film had its world premiere at Sundance 2025, where it won the Special Jury Award in the World Cinema Documentary Competition, and it also received the British BAFTA award, among others. This is an extraordinary success, as it is the first Czech documentary (a Danish-Czech co-production) to win an Oscar and one of the most remarkable achievements of Czech cinema in its modern history. The co-production live-action film DJ Ahmet, which premiered in the competition section at Sundance, was also a success. Further success was recorded by the co-production Wishing on a Star (Je to ve hvězdách), screened at prestigious international festivals including the Venice Film Festival. The Czech Republic regularly has representatives at category A and other film festivals around the world; the most striking success was the film Caravan (Karavan), which after more than 30 years returned Czech filmmakers to a competition section (Un Certain Regard) at Cannes. International attention was also drawn by another co-production project, Franz, nominated for European Film Awards in several categories.

APA – Audiovisual Producers’ Association

Contact: Martina Reková, martina.rekova@4press.cz, +420 731 573 993; Klára Bobková, +420 731 514 462, klara.bobkova@4press.cz; Národní 28, Prague 1, www.asociaceproducentu.cz