German Producers Upbeat Following Revamp of Funding

Germany’s filmmaking scene is vibrant, with a recent reform of the country’s film law boosting production incentives, but producers see room for improvement.

The Teutonic contingent in Venice is led by “Silent Friend” in competition, part of a pack of 21 German productions and co-productions in various sections, with a further four projects in Venice Production Bridge.

Although “Silent Friend” is directed by a Hungarian, Ildikó Enyedi, it is a majority German production, and one of the country’s strengths is its willingness to embrace international talent. Another film to look out for is “Funeral Casino Blues” in Horizons, directed by Roderick Warich, who was in Venice in 2023 as the co-screenwriter of “The Universal Theory.”

Simone Baumann, managing director of German Films, which promotes German cinema abroad, describes the Venice films as “a mirror of contemporary German filmmaking,” at least with respect to festival films. She adds that it’s been “a really good year” for German films at festivals, including Cannes where there was a warm reception for Mascha Schilinski’s “Sound of Falling,” which won the Jury Prize and has been selected as Germany’s Oscar candidate, and Fatih Akin’s “Amrum.”

Commenting on the Toronto lineup, where 20 German productions and co-productions will be screening, Baumann says, “It’s a good mix of established and young directors,” citing Joscha Bongard’s “Babystar” as an example of the latter. Other German films there include Edward Berger’s “Ballad of a Small Player,” which premiered at Telluride, Christian Petzold’s “Miroirs No.3,” which premiered in Cannes, “Silent Friend” and “Sound of Falling.”

Germany recently upped funding for its national production incentive programs – German Federal Film Fund (DFFF) and German Motion Picture Fund (GMPF) – from 133 million euros ($156 million) a year to 250 million euros ($292 million) from next year. This followed an uplift earlier this year when the incentives delivered by DFFF and GMPF rose from 25% to 30% of the German spend, which comes as a non-repayable grant.

There is also talk of introducing an investment obligation, whereby U.S. streaming platforms and the VOD services of Germany’s broadcasters are obliged to fund local content, and the introduction of a tax incentive model for the production incentives.

There is no issue about the quantity of films produced in Germany, which is up to 250 feature-length films for theatrical distribution a year – around 100 documentaries, and 150 fiction films, including animated films. But there is an issue about whether local films are appropriate for export. Baumann says only 50-60 films a year are distributed abroad, or get a festival release at least. Another 20-30 films a year have a successful release only in Germany. “There is not really a theatrical market for so many films,” Baumann says. She hopes the film law reforms will lead to fewer films, but also a rise in average budgets and more money spent on development. She’d also like to see more money spent on marketing.

From Baumann’s point of view, German producers are developing a better awareness of the needs of the international market. “We have a young generation of producers who are already better integrated into the international market,” she says. “It’s getting better slowly, step by step.”

The presence of the global streamers in the German market has broadened the opportunities for local producers. For example, Franky Kusche, who works for Pantaleon Films, has produced Dennis Gansel’s war-time drama “The Tiger,” which will be the first German film Amazon MGM Studios has launched in theaters, followed by a worldwide release on Prime Video.

Although “The Tiger” was shot in the Czech Republic, as were many other German productions, he believes the reformed German film law “will make it worth shooting at home instead of going elsewhere.” He adds that Germany has “great crews and great locations.”

Kusche is enthusiastic about the creative talent in Germany, although he mentions that “we have great writers, but it’s always a chase to get the right people” when you need them.

He sees no need to switch to the English-language for a film like “The Tiger,” which requires the German-language for its “authenticity,” although he adds it depends on the project. Heist-action movie “Army of Thieves,” which Pantaleon produced with Zack Snyder for Netflix, was shot in English, and the team appreciated “how easy it is for a movie like this to travel,” Kusche says. “If the story is right, it’s definitely a big advantage [to shoot in English] for the visibility worldwide.”

Fabian Gasmia, one of the founders of production house Seven Elephants, is in Venice with David Wnendt’s “Athos 264,” which is co-produced by Constantin Film Produktion. The sci-fi crime film, which is set on the moon of Neptune in about 600 years’ time, is seeking additional funds for VFX in the Gap-Financing Market. The film will shoot at Studio Babelsberg in Berlin and in an abandoned salt mine in Germany.

One issue for Gasmia is that it’s “very difficult” in Germany to finance a film above 10 million euros ($11.7 million), and the budget for “Athos 26” is 18 million euros ($21.1 million). He says, “The films that are not made in the Anglo-Saxon system that prevail are usually those that you would find in Cannes competition, and these films usually cost between 15 and 30 million euros ($17.6 million-$ 35.1 million). The ‘Parasites,’ the ‘Triangle of Sadnesses’ of this world, they’re usually fairly expensive, and in Germany, we have a great system to make films for up to 9 million euros ($10.5 million) but these films usually don’t travel. They don’t have the production value, and they are made for the local market.”

He adds, “We should, very confidently, like the Danes and the French, adjust our system so that we can make more films like our sci-fi film. There should be two or three films per year in this range of 15 to 20 million euros so we are able to create our own cinema stars.”

“We have to think of the global market much more than we used to,” he says. “We have to make sure that we always know why our films would travel.”

To boost the number of bigger budget German films, Gasmia suggests that DFFF makes an adjustment so that those films with a budget above 10 million euros ($11.7 million) receive a production incentive of 40%, rather than 30%. There would need to be a proviso that the producers can explain how they would sell the films to 30-40 countries.

Komplizen Film, whose credits include “Maria” with Angelina Jolie (which shot in Hungary) and “Spencer” with Kristen Stewart (which shot in Germany), is in Venice with Hagai Levi’s series “Etty.” Jonas Dornbach, one of the company’s managing directors, is upbeat about German film law reform, but he is in favor of a switch to a tax incentive model, although he would prefer for there to be no cap on the total amount available, and an investment obligation.

He says, “If we had an investment obligation that would be a game changer, and a tax incentive would be a clearer [way to operate] without having to say, ‘yes, but this,’ and ‘yes, but that.’ It would also attract production from outside Germany. I mean it’s crazy, I love [the Hungarians], but everything is produced now in Hungary [where there is an automatic 30% tax rebate].”

Broadcasters play a key role in the film funding system in Germany, which can put a brake on more adventurous filmmaking. Dornbach says, “The challenge is how we can really incentivize producers to take risks. It is a challenge that TV is the gatekeepers of everything.”

He adds, “[Broadcasters] are feeling the pressure of the market, and their selection is becoming more and more conservative. It’s so challenging to predict what is going to work, and everybody’s looking for this recipe [for success] and to have this security. I have the feeling that there are more and more people that are very afraid and don’t want to take risks.”