Germany's New Film Funding Law
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Loading... - Annette Monet
- 02 Jan 2025
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Germany's film and television industries are poised for a transformative shift as the country implements a new film funding law, set to take effect in 2025. Passed hastily by the German parliament, this legislation aims to streamline the subsidy process for local productions while enhancing Germany's appeal as a filming location for international projects, particularly from Hollywood.
One of the most significant changes is the increase in the cash back production grant from 25% to 30%. This adjustment is expected to make Germany more competitive in attracting high-profile international productions. Industry experts, including producer Philipp Kreuzer, have noted that this increase is a positive development, especially for projects like "Riddick: Furya," which recently received substantial funding through the new grant.
However, while the new law brings optimism, it also presents challenges. The funding structure still imposes caps on rebates—$26 million per film and $10.4 million per TV series—while the total funding pool remains at approximately $374 million per year. Many producers are concerned that these limitations may hinder the ability to support larger projects adequately.
The law is built on three pillars, with the first—local film subsidies—approved. The remaining two pillars, which include tax incentives for international productions and an investment obligation for streaming services, are expected to be revisited in 2025. The investment obligation aims to ensure that a portion of revenues generated in Germany is reinvested into local productions, but it has faced pushback from streaming companies concerned about the economic viability of such requirements.
As the industry navigates these changes, there is a sense of cautious optimism. While the new funding law represents a step forward in supporting both local and international productions, the ongoing discussions about funding caps and the investment obligation will be critical in shaping the future of German film and television. The coming months will be pivotal as stakeholders advocate for further reforms to create a more robust and sustainable funding environment.
