Deloitte: The film industry in the Czech Republic represents more than one percent of GDP
Prague, 27 July 2018 – The film production in the Czech Republic directly and indirectly produces sales of over CZK 104 billion, ie 1.1% of GDP. Those are findings of the newest Deloitte analysis Films and Games – Entertainment in Czechia from the Economic Point of View. In the Czech Republic, mainly foreign films (55% of overall production) and adverts (31%) are made, Czech films taking the third place (14%).
“The direct sales of the film industry in the Czech Republic amount to CZK 54 billion. But that is not all. Filmmakers need a lot of services and stuff, mainly technical equipment and catering, and they need to move from one place to another. Thus, in other sectors, they help to create production for a further CZK 50 billion,” specifies David Marek, Deloitte’s Chief Economist.
According to the Deloitte analysis, film and TV production directly employs over 12 thousand people. With connected sectors it creates a further 20 thousand jobs. Thus the industry pays a total of CZK 19 billion to public budgets.
Over the past three decades, viewers’ habits have radically changed. Before 1989, up to 100 million visitors used to attend a cinema yearly. At the end of the 1990s, the number decreased to 8 million. Today, the overall audience is almost twofold. What also changed is the average ticket price. Whereas in 1989, tickets were sold for CZK 7 on average, today they are sold for CZK 113 (excluding VAT).
“Both worldwide and at home, we may watch several trends. For example, 3D-films are not such blockbusters as expected. On the other hand, new technologies, such as more precise robotic arms or drones influence the production significantly. Streaming media, such as Netflix or Hulu, also come into play with an increasing significance,” adds David Marek.
Of the so-called culture industry, film production represents about a fifth. Books and press take a double share (41%) of that industry. Videogames, being a relatively young branch, participate in the entertainment production in the Czech Republic by 4 to 5 percent.
Deloitte’s study Films and Games – Entertainment in Czechia from the Economic Point of View including more details is available here.