Germany's film funding system is set for a major overhaul, sparking both praise and criticism from various stakeholders. The country's commissioner for culture and media, Claudia Roth, recently unveiled her comprehensive reform plans, aiming to streamline and enhance the current funding structure for the film industry. The proposed changes, which include an amendment to the existing film funding law, a tax incentive model, and an investment obligation, seek to make German film funding more sustainable, efficient, and transparent.
For years, Hollywood productions shooting in Germany have benefited from the country's generous funding programs. However, the planned reform intends to create a more balanced and robust system that will benefit not only international productions but also support the local film industry. Films like 'The Matrix Resurrections,' 'Uncharted,' and 'The Hunger Games: The Ballad of Songbirds & Snakes' have already taken advantage of German funding in recent years.
The reform has three central pillars. First, an amendment to the film funding law will expand the German Federal Film Board (FFA). This centralization of federal funding aims to streamline the process and bring greater cohesion to the allocation of resources. Additionally, a diversity advisory board will be established at the FFA to ensure a broader representation of German society in decision-making.
The second pillar of the reform is the long-awaited introduction of a tax incentive model. Producers of films, high-end series, and production service providers will be eligible to receive up to 30% of recognized German production costs as a film funding allowance. The financial support will be financed from corporate and income tax revenue. This tax incentive model seeks to attract more international productions to Germany, providing not only financial assistance but also security and forward visibility for film projects throughout the year.
The third and perhaps most contentious pillar is the investment obligation. Broadcasters and streamers operating in the German market, who have reaped substantial profits, will be required to reinvest 20% of their German-generated sales back into European productions. Of the total investment, 70% must be allocated towards German-language projects. This mechanism aligns with successful models implemented in France and Italy. However, industry lobby group Vaunet, representing major commercial broadcasters and media groups, has criticized this pillar, claiming it ignores the concerns of private media providers and may jeopardize diversity and economic sustainability in the competitive on-demand market.
While some industry stakeholders, particularly producers' associations, see the investment obligation as essential for the success of the reform, Vaunet argues that the focus should remain on the tax incentive model alone. They assert that the current proposal undermines the sovereignty of providers and could hinder Germany's progress as a film location.
This ambitious reform, poised to go into effect in 2025, aims to improve filmmaking conditions in Germany, strengthen the country's position as a production hub, and adapt to the growing international competition. By revamping the film funding system, Germany seeks to strike a balance between supporting local talent and attracting major international productions. With ongoing discussions and input from various stakeholders, the final shape of the reform may take into account concerns raised by industry players while still moving forward with the proposed changes.
