The obligation for providers of on-demand audiovisual media services (AVMS) to pay a contribution to the Audiovisual Fund (AVF) will also be extended to foreign entities, according to an amendment to the Act on Audiovisual Fund approved by Parliament on Tuesday.
"The main aim is to introduce, in a proportionate and non-discriminatory manner, an obligation for AVMS providers that are not based in Slovakia but nevertheless provide services in our territory, and are targeting Slovak customers, to pay a contribution to the AVF and also invest directly in Slovak audiovisual production," stated the Culture Ministry.
Effective from 1 January 2027, the legislation is based on the EU's Audiovisual Media Services Directive, which responds to the rapid growth of global streaming platforms providing services and generating profits also in EU member states.
The amount of the contribution is set at 0.5 percent of the provider's total revenue earned in Slovakia in the previous calendar year. Under the new rules, AVMS providers will also be required to invest, during the calendar year, three percent of their total revenue in the development and production of Slovak audiovisual works, their language versions or Slovak-language versions of foreign works.
Culture Minister Martina Šimkovičová (a Slovak National Party/SNS nominee) pointed out that the obligation will not apply to providers with low turnover or low viewership based on criteria set by law. She also stressed the need to ensure stable conditions for the further development of Slovak audiovisual production.
According to the ministry, the so-called cross-border contributions are currently in place in 14 EU member states, typically ranging between 1.5 and 5 percent of revenue generated in the respective member state. In France, the investment obligation can reach as much as 25 percent, whereas in Italy, direct investments range between 16 and 20 percent, added the ministry.
Source: TASR
