Czech Radio to lose a third of its licence fee revenue due to exemption of certain licence fee payers

This represents roughly a third of the current budget and constitutes an extraordinary intervention that will directly affect Czech Radio’s financial management as well as the scope of the public service it provides to citizens throughout the Czech Republic.

According to the parameters of the proposal, the change is likely to affect around 660,000 households – roughly a quarter of all households in the Czech Republic – as well as more than 17,000 businesses with over 25 employees and leasing companies that are currently liable to pay the licence fee.

“This is not a minor adjustment, but a fundamental intervention in the stable funding of public service media. This proposal is entirely ill-conceived; it alters the funding of public service media without any rational reason, clear public objective, or solution to the impact of the loss of revenue. Ultimately, this is a move aimed at economically weakening public service media and creating pressure to undermine their role and significance in society. Such an approach is neither in the public interest nor in the interest of the stable and independent functioning of public service media and their editorial and institutional autonomy,” says René Zavoral, Director General of Czech Radio, adding: “A one-third drop in revenue will inevitably result in cuts to the production of original content, news coverage, regional broadcasting, support for cultural projects, and the ability to respond to emergencies.”

Furthermore, the proposed bill is at odds with the requirements of the European Media Freedom Act (EMFA) for the EU Member States. The Act stipulates that the funding of public service media must be based on transparent and objective criteria established in advance and must ensure adequate, sustainable and predictable financial resources for the fulfilment of public service obligations.

“If the state creates a shortfall of hundreds of millions of Czech crowns without systematic compensation, and with effect from the same year, this raises serious doubts as to whether such a procedure is compatible with European law,” added Zavoral.

The problematic aspects of the parliamentary bill, as we understand them today

• The bill is entirely unsystematic, as it is based on arguments that do not correspond with reality. Young people under the age of 26 living in a shared household are not subject to separate licence fee obligations; people with visual and hearing impairments are already exempt from payment, and those on low incomes can apply for exemption now.
• It is non-transparent, as there has been no proper expert debate on the proposal and its implications, and the proposal was not discussed with Czech Radio in advance.
• It creates unequal conditions between different groups of licence fee payers, without there being any clear and justifiable systemic rationale for such a distinction.
• If the inflation clause (indexation of the licence fee to inflation) is abolished, the stability of funding will be significantly reduced, as indexation ensured that Czech Radio could cover rising costs over the long term without the need for repeated approvals of licence fee increases, while also maintaining the real value of the licence fee.
• Given that the proposal is presented as a short-term measure, it is in stark contrast to the EU regulation in terms of the predictability and sustainability of public service media funding.

“Czech Radio is prepared to engage in a substantive debate on its funding, but this must be conducted transparently, predictably and with full awareness of the specific impacts on the public service,” emphasises René Zavoral.