The new year promises exciting developments. Cinema is experiencing a successful renaissance. Long since declared dead during the pandemic, extra-long films in particular are generating box office results, as in the heyday of the big screen. With FAST (Free ad-supported TV, quasi advertising-financed streaming), specialty TV content is offered free of charge with advertising and complements the VOD world. In addition to tried-and-tested subscription models, AVOD (advertising-financed on-demand content) is to be enriched with a lot of current streaming content. Despite the impending strikes by American unions, especially those of the authors (WGA), and the reform of public broadcasting in Germany - which is painfully noticeable for the production landscape - further growth of the overall market can be expected. Comprehensive sustainability will have a significant impact on organization and training. Smart solutions will change everyday production. At the same time, the industry is rediscovering the value of personal encounters at industry events.
The new industry year begins in Bavaria with the Munich Film Week and traditionally with the exclusive event “Filmszene Bayern auf Eis” , this year for the 25th time. The FFF Bayern traditionally takes on the patronage. The event is supported by the broad commitment of various companies, including ARRI , Bavaria Studios , Constantin Film , ndf Entertainment , Leonine , LfA Landesbank für Aufbaufinanzierung , adag payroll services , Black Forest Studios , Cattleya , Ludwig Kameraverleih , OneGate Media , Optical Art , Theaterkunst and International Film Partners .
The Berlinale is coming up with a film market, various network highlights and internationally acclaimed award ceremonies in February - our legendary Production Breakfast at the SonyCenter promises to exceed the pre-pandemic standard. At the latest there, we will all learn a lot about the expected market development and the assessment of the probable risks for the new year. One thing is already becoming clear today: the film industry will need new alliances, partnerships and a willingness to cooperate this year. If we succeed in doing this, we will be able to use the changes as an opportunity and shape them together. And, as already mentioned at the beginning, there is potential on various levels...
Based on audience acceptance and high valuation on the capital markets, Netflix and Amazon followed all major studios except Sony Entertainment, although Warner Media is currently counteracting this. While A24 is positioning itself as the new mini-major studio at the box office with "Everything Everywhere All at Once" ahead of Lionsgate and MGM, the former is rethinking its digital strategy, "Starz" and MGM were famously taken over by Amazon. The market remains diverse, but is already diversifying significantly back to an "also-sell market" - a strengthening of global sales. This is also likely to lead to a readjustment of the classic free TV market in Germany. The rumored takeover of ProSieben.Sat1 by Berlusconi's MFE could now lead to a new competitive situation for TV commissioned productions that will boost production. Promising prospects for producers: streamers with high quality requirements, television under competitive pressure, new program providers with flexible business models such as SVOD, AVOD, free media libraries and FAST. Good signals after the recent rather poor experiences with indie producers, but also with a different price tag.
The ratio between development costs and commissioned programs has recently deteriorated to the point where their existence is threatened. Public broadcasters are under double budget pressure: on the one hand, austerity measures, and on the other, higher budgets for general price increases and the ever-present pressure on skilled workers. This has resulted in many cancellations of orders that had already been factored in. Not everyone has been able to benefit from the steadily increasing demand for content. Now cinema and free TV are coming back worldwide and strengthening the demand market. Global distribution revenues and box office receipts could fill the financing gaps for in-house projects. In this country, the FFG now urgently needs to be amended. There is too little revenue sharing for the producing company and the German funding system has long since lost its appeal for service producers of large foreign projects. Germany is actually the dream destination for major clients after Great Britain. Productions that are realized in Germany without a local connection can only be acquired through excellent, personal relationships and despite the funding system.
At least the service market has made great strides in the areas of digitization and "smart excellence". Sustainability as an overarching goal is firmly anchored in the mindset, as the industry association VTFF demonstrates. The German implementation of an actually good European idea for classifying digital signatures became a bureaucratic monster in the German Evidence Act. Instead of digital, printouts and original signatures are now required on employment contracts. With a hybrid-digital employment contract, adag payroll service now combines the advantages of digitization with the new legal requirements. An important step for short-term employment contracts, especially for extras.
Service excellence is an important goal for all leading service providers. In the art of theater, the focus is on the customer following management changes and digitalization. International costume designers recognize this with orders for prestigious productions, but national productions also benefit from the flexibility. Expertise in all aspects of costume design is also available in Poland and Hungary at the highest international standard. The administrative effort and processing times have been drastically reduced and ensure maximum transparency in production.
Customer proximity is also a top priority at Ludwig Camera Rental . The group has now established itself as a system partner for comprehensive overall solutions. Nevertheless, classic equipment rental is the core service, which can be expanded horizontally and vertically for customers across the entire production process. With the "Green Screen" sustainability team, productions can receive comprehensive advice on the topic of "green filming".
Studio space is, alongside skilled workers, one of the most needed resources. A successful provider from Germany has long been established on the American market, and now also appeals to local productions with a fascinating range of real locations, functional decorations and classic studio space. The Black Forest Studios were an insider tip, especially for international productions, due to their excellent accessibility via Swiss airports. We will be presenting the full range of services shortly.
We were already delighted by the headlines about ratings and visitor numbers for Optical Art from Hamburg last year. When you think of exclusive post-production services, you quickly think of the legendary teams in Hamburg and their sister company in Berlin. With television, especially non-fiction productions, financial options are usually more limited. The success of such formats depends on the creative results of the post-production. Outstanding productions, some of which represent Germany at festivals all over the world, enrich the company's list of references.
With our new partner OneGate Media , we are strengthening our commitment in the north. Founded over 60 years ago as a subsidiary of NDR, the sales and licensing company for film and television productions belongs to the Studio Hamburg Group, one of the leading production houses in Germany, and to the ARD network. Six sales departments offer producers "the gateway to the world".
Our service partners offer their services in more and more countries and regions. However, a reliable service producer is required in some destinations, especially for access to funding. Cattleya is known to many as a producer of award-winning series. The Service Production Division is highly valued by customers for its enormous professionalism and reliability. Italy offers fascinating locations, especially for German productions, in addition to an excellent funding system. Access to top crews and resources has become a challenge throughout Europe, which an active production company in particular can optimally guarantee through its constant market interaction.
Skilled workers are and will remain an important issue. Training and further education opportunities that are both practice-oriented and internationally recognized are still rare. The Munich Film Workshop, in partnership with a British university, offers a part-time "Master of Arts in Film and Digital Media" . The highlight: a bachelor's degree that would otherwise be the entry requirement can be replaced by practical work experience. Projects from everyday working life are integrated into the teaching, so that the additional workload can be reduced to a minimum. Companies can also get involved flexibly and thus increase their attractiveness as employers.
The United Nations has already made it clear with its "17 goals" that sustainability means much more than individual "green" solutions. The capital market has long since created clarity for access to financing with the ESG criteria, which in Germany have been fully implemented by the BAFIN. Now the EU has followed suit and also made the triad of environmental protection, social issues and management hygiene binding. Together with Quimron from XPERTS network, International Film Partners offers an industry-specific solution for fulfilling data procurement in accordance with the new sustainability reporting requirements.
At this point we would also like to thank our many Ensider:Partners . These include many associations and institutions, but also companies from the creative industries. Together we are stronger. An often-quoted African proverb says: "If you want to go fast, go alone. If you want to go far, go with others." Please contact us if you are interested in becoming an Ensider:Partner, whether as an individual, as a company or as an interest group.
Our summary for 2023: A positive start to the new year!
Your Ensider:Team
(Author: Markus Vogelbacher)