With the adoption of the 1972 Film Act, the old film fund was abolished and replaced by the State-administered Danish Film Institute. At the same time, the cinema licensing system was done away with and film now came within the province of the Finance Act (Budget).

Today, the Ministry of Culture is responsible for the overall administration of State institutions connected with the Danish film industry.

A new Film Act came into force in March 1997, which fused the formerly independent film agencies - the National Film Board of Denmark, the Danish Film Institute and the Danish Film Museum - into one agency now known as the Danish Film Institute. The Media Council for Children and Young People was also established at this juncture to replace the National Film Censorship Board, the agency responsible for censoring films and videos aimed at children and young people following the abolition of adult censorship in 1969.