Minister to review RÚV film rebates under new agreement

Logi Einarsson, Iceland’s minister of culture, innovation and higher education, says the state broadcaster RÚV’s use of the film reimbursement system will be reviewed when its new service agreement is prepared, Morgunblaðið reports.

Logi said it was not necessarily inappropriate for some RÚV content to be produced by outside companies and qualify for reimbursements. However, he said it was unreasonable for RÚV to compete with other market participants for limited funds.

Morgunblaðið has reported in recent years on RÚV’s increased use of the reimbursement scheme, despite the broadcaster receiving billions of Icelandic krónur annually through the state budget. Production of the 2025 New Year’s comedy show cost about 80 million krónur and generated 20 million krónur in reimbursements, equivalent to 25% of its production costs.

Under Icelandic law, producers of films or television content can receive reimbursements of up to 25% of production costs incurred in Iceland, or 35% if the requirements for exceptionally large projects are met. RÚV cannot apply for reimbursements itself, but it can receive them when it participates in productions with independent production companies.

This has applied to programmes such as Kappsmál, which was produced by Skot for several years. RÚV has outsourced production of its New Year’s show for 11 consecutive years, allowing more money to be invested in the programme than if it were produced at the broadcaster’s headquarters. About 147 million krónur has been paid from the state treasury in reimbursements for the show since 2015.

“We are now about to renew the service agreement with RÚV at the beginning of 2027. These issues, among others, will certainly be examined then,” Logi told Morgunblaðið. He said they would also be considered in a review of the laws governing the reimbursement system, which he plans to reform this winter.

Logi also referred to a long-term proposal to establish a television fund alongside the film fund, an initiative that has not been realised in the past 25 years. He said the current economic situation meant he was not promising such a fund within the next one or two years, but added that the issue should be considered so that publicly funded organisations such as RÚV do not compete with others for limited resources.

He stressed that having some RÚV content produced externally and qualify for the reimbursement system could be appropriate. The main goal, he said, was to support original production in Iceland and strengthen the arts.

Logi also said he wanted RÚV to be required to make more of its older content available, including to independent media. He said the public, which had paid for the material over the years, should be able to access it more widely.