European Producers Back New Investment Rules as Hungary Cements Its Lead

Earlier this year, the former Czech Film Fund rebranded as the Czech Audiovisual Fund, introducing a new Audiovisual Act. Its centerpiece is a 3.5% investment obligation for streaming platforms such as Netflix, Disney+ and Amazon Prime Video. Previously, only domestic platforms like Voyo had to contribute, at a rate of 0.5%. The Czech Film Center described the reform as a way to ensure “equity” between local and global players, creating a fairer funding framework for local content.

The obligation will be split between a 1% parafiscal levy and 2.5% in direct investment, matched by state funds. This is expected to significantly increase the available budget for domestic productions and international co-productions. Producer Jan Kallista called the measure “very much” anticipated by the industry, as it will enable the fund to support development schemes and help raise production quality across the region.

Still, competition remains fierce, with Hungary maintaining its position as Central Europe’s strongest production hub. Kallista acknowledged the challenge, noting that many projects had shifted to Budapest in recent years due to Hungary’s attractive incentives and infrastructure. For the Czech Republic, the new law is seen as an attempt to close that gap, while Hungary continues to benefit from its established advantage.

Industry experts also warn that financial contributions alone are not enough. Dariusz Jablonski, president of the European Producers Club, pointed out the need for stronger rights protection for European producers, arguing that retaining rights is key to building sustainable creative businesses.

The discussion in Karlovy Vary also touched on Donald Trump’s earlier threat to impose 100% tariffs on foreign film imports, which had created months of uncertainty. Kallista admitted that, during Cannes, producers were unsure how to react as Trump alternated between aggressive announcements and walk-backs, leaving investors and sales agents in a state of caution. That uncertainty has eased following the recent U.S.–EU trade deal, which capped most tariffs at 15% and put planned European retaliation on hold. While the agreement is not without risks—Trump has warned tariffs could rise again if EU investment pledges fall short—it has restored a measure of stability for European producers.

For Hungary, this stabilization could be decisive. As international productions seek predictable and cost-efficient options, Budapest remains the obvious choice, backed by its competitive rebate system, experienced crews and growing post-production sector.

As Petr Dvořák, chairman of the Czech Audiovisual Fund, noted, “If there is more demand than offer in the European market, the prices of services will go up and crews can be better paid. This means the industry will grow, which is what everybody hopes for.”

Source: Variety