Reforms, streaming tax & digitisation

Czechia: Government passes licence fee abolition

The Czech government has approved the abolition of the licence fee for Czech Television (ČT) and Czech Radio (ČRo), in a move that will also see funding for public media reduced to 2008 levels.

The Andrej Babiš-led government’s proposal to abolish the licence fee, and instead replace it with a direct and fixed budget from the State, has been highly contested by politicians, the broadcasters themselves, media freedom groups, and sectors of the Czech population. 

The government expects the law to come into force in January. However, the amendments still need to survive three parliamentary readings, the Senate, and a possible veto from Prague Castle.

ČT’s director said that if the law is implemented, their revenue would shrink by between one billion to nearly six billion crowns (US$48 million – US$288 million) and they will be forced to cut 300 to 500 jobs. The general director of radio, René Zavoral, said they would also have to let go 150 to 200 of their workers. The regional stations would remain untouched, but it could have grave consequences for future productions, the creative abilities of the broadcasters, and their foreign news services. 

In response to the government’s decision, the Public Law Initiative, announced a strike. Their representative, Daniel Stach, said it was to defend the principle of public broadcasters “as independent as possible from political influence, regardless of who is in power at the time”. 

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Hungary: Restructure and new governance proposed for public media

A bill put forward by Hungary’s new government is promising to restore the independence of the country’s public broadcaster, MTVA and the news agency, MTI. Péter Magyar’s party won elections in April, ending Viktor Orbán’s 16-year rule of Hungary.

His government’s bill proposes the creation of independent public media committee which will oversee the public broadcaster, its operations and finances. The MTVA would also be re-organised, with the radio and television separated into different companies, while the current leadership would be removed from post. MTVA was accused of being a government mouthpiece under the previous Orbán government. 

Magyar’s government has committed to several rule-of-law reforms required by Brussels to unlock EU funds which were frozen during Orbán’s reign. The Committee to Protect Journalists has urged EU member states to encourage Magyar’s new government to rebuild Hungary’s media landscape.

“Orbán’s capture of the Hungarian media landscape turned much of the press into de facto propaganda mouthpieces for the Fidesz party,” said CPJ’s Tom Gibson. “Hungary has the potential not only to repair the damage, but also, if reform is effective, to be a model for press freedom in Europe.”

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Pakistan: National media digitisation plans announced, but details remain unclear

The Pakistan government has unveiled plans to digitise the country’s state-run broadcasting networks, Pakistan Television (PTV) and the Pakistan Broadcasting Corporation (PBC), as part of a broader effort to modernise the national media landscape. 

Building on limited upgrade efforts last year, which focused on a handful of PTV and PBC facilities, the government’s Standing Committee on Information and Broadcasting has pledged 14 digitisation projects valued at Rs 12.831 billion (US$136 million) for the current financial year. Most of Pakistan’s broadcasting infrastructure still runs on an analogue network. 

But the government’s plans are short on details, including the number of stations affected, procurement procedures, or budgetary allocations. Similarly, other initiatives, such as the proposed National Centre for Brands Development (NCBD) and the Creative and Culture Industry project – which are intended to strengthen Pakistan’s national identity and digital content sectors respectively – lack clarity. The absence of these details has raised concerns over whether they can be delivered by 2027. 

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Canada: Future of streaming tax uncertain amid US trade talks

The future of the Canadian government’s attempt to force global streaming platforms to invest in local productions is increasingly uncertain. The so-called ‘Netflix tax’, which was introduced in 2023, taxed the revenue of all platforms with an annual turnover of at least CA$25 million (US$18 million), with the proceeds invested into either the Canada Media Fund or local production companies. No funds have been distributed, however, with a legal challenge ongoing. 

The government has encouraged a change of tack from the CRTC, which oversees the levy, after it raised it from five to 15 percent last month. A directive from the federal government urged the CRTC to reverse the hike, with many commentators suggesting pending negotiations between Canada, the US and Mexico over the future of their trade pact as the reason behind the decision. The policy has attracted fierce criticism from US lawmakers. 

While the CRTC is independent from the government, observers say it’s likely they will comply with the directive. But its chair, Vicky Eatrides, told an audience at the Banff World Media Festival on Monday that their work would continue. “We are focused on supporting a modern and sustainable broadcasting system for Canada … Adaptation has always been a part of our regulatory landscape. … It’s not the final chapter.” 

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