Trump’s Relation With Hollywood, “Incentives War” and Streaming Levy in Focus at KVIFF

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On Tuesday, representatives from Prague attended the 59th Karlovy Vary International Film Festival (KVIFF). The Czech Minister of Finance, Zbyněk Stanjura, and the Czech Minister of Culture, Martin Baxa, were present in the spa town to address a press conference about the recent increase in Czech production incentives. During this event, they discussed the growing competition for film and TV productions, as well as U.S. President Donald Trump’s interactions with Hollywood.

Starting from January, the country has boosted its production incentives from 20% to 25%. Meanwhile, the Czech Republic has upped its support for animated and digitally-made projects to a staggering 35%.

In response to queries about the competitive terrain of incentives, Stanjura expressed that any monetary discrepancies between what his nation and other nations provide “should ideally be balanced by the quality of our infrastructure and the expertise of our professionals who excel in producing fine films and art,” as interpreted. “Additionally, we’ve increased the limit for tax incentives, so I am confident that we have everything necessary to thrive.

In relation to Trump’s proposal of potential tariffs on foreign movies and efforts to bring more productions to the U.S., the Czech finance minister commented: “We’ll need to wait and see how the negotiations play out. It’s common knowledge that Donald Trump isn’t well-liked in Hollywood. However, if you have skilled professionals and attractive incentives, then you can certainly compete.

the escalating trend of increased incentives is troublesome. What I’m suggesting is that we avoid engaging in a battle over incentives.”

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He stressed that while incentives aren’t everything, not providing them isn’t an option. “Should we decide to abandon our support for this industry, it would be detrimental for us,” Stanjura pointed out. “But I concur: the growing trend of more and more incentives is problematic. What I propose is that we steer clear of a war over incentives.”

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the continuous rise in incentives is inconvenient. What I advocate for is avoiding a competition over incentives.

Minister Baxa of Czech culture is equally optimistic about the combination of financial rewards and talented workforces within the nation. Furthermore, he announced that a public invitation for the position of Director at the upcoming Czech Audiovisual Fund will be released imminently, with the selection process expected to conclude in late November.

This year, a tax was introduced on every streaming platform active within the Czech Republic, irrespective of their home country. These platforms are now required to contribute 3.5% of their earnings from the Czech Republic. This contribution comprises a minimum of 1% as a direct payment, with the remaining 2.5% able to be fulfilled either by making additional payments or by investing directly in Czech content.

Baxa stated that the exact amount of revenue from Video On Demand (VOD) platforms remains uncertain, as the initial contributions won’t be evaluated until soon. He clarified that potential investments could stem from Netflix producing original content or purchasing a Czech film. In other words, we need to be patient and wait for the moment when they actually transfer money to us.

The KVIFF began last Friday, featuring big names like Dakota Johnson, Peter Sarsgaard, and Vicky Krieps, who were honored with the President’s Award. Michael Douglas was unexpectedly presented with a unique statue during its initial weekend. The event continues until July 12th.

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2025-07-08 17:54