As part of the Media Days last Thursday, the 25th Film Industry Forum discussed forecasts for short- and medium-term developments from various perspectives. The key question was how production capacity utilization will develop. The need for skilled workers depends on this, it is influenced by the economy and funding policy, and ultimately the development of AI solutions also takes place in line with this market development. The various cause-and-effect sequences are assessed similarly by the experts.
We summarize the results for you and also provide an insight into the general mood.
The composition of the panel, under the usual confident moderation of Prof. Dr. Klaus Schaefer, made it possible to illuminate a broad spectrum of different areas of the film industry. As the dominant topic of the media days, artificial intelligence (AI) dominated many discussions.
Prof. Dr. Sylvia Rothe from the HFF Munich explained the current technical possibilities and the legal aspects that still need to be clarified. AI will lead to massive upheavals in many areas, for example in dubbing, composition and sound design, VFX or in all areas of development.
Joe Neurauter confirmed the increasing commitment to international projects being realized in the Penzing Studios. The Nicole Kidman series "9 Perfect Strangers" is currently being prepared there, with filming starting soon after a slight delay. Penzing Studios expects high capacity utilization in the next two years. First, productions that were paused due to the US strikes will have to be produced. This will also lead to a higher production volume of international projects in Germany. The biggest point of discussion with international clients would probably be the issue of film funding, which is above all too complicated and no longer internationally competitive.
Dr. Lisa Giehl explained the expected funding reform and the associated, overall positive effects for the film industry using Leonine Studios as an example. As a diversified media company, resilience and stability would be more pronounced than in small companies. Ultimately, however, all market participants would benefit from the planned investment obligation. In Bavaria and Munich in particular, companies like Leonine make a positive contribution to the attractiveness of the location and thus also to the magnet on the highly competitive, international skilled labor market.
The SPIO, the leading organisation of the film industry, was represented by Christian Sommer, who also heads the Association of Technical Companies for Film and Television (VTFF). The current challenges such as the shortage of skilled workers, technological changes and the improvement of ecological production conditions can only be overcome jointly. In particular, the pressure on margins combined with high investment requirements in a crisis-ridden overall economic environment is a huge challenge. This is another reason why he was extremely pleased that service companies would also have direct access to funding in the future.
From the cinemas' point of view, 2023 was a very good year and they expect things to get worse, explained Christine Berg from HDF Kino. AI and skilled workers also keep the venues busy, but the focus is on the programs available there. Economic challenges are expected next year, particularly due to the reduction in German productions and the already foreseeable collapse of American blockbusters, some of whose releases have been postponed by a year due to strikes.
The assessment of all participants regarding the development of production activities in the next year was largely unanimous. For example, consolidation is expected to continue in the streaming services.
In addition, the trend towards mainstream content and the reduction of exorbitantly high production budgets are expected to be reflected in shooting days and sales volumes. At the same time, it is assumed that demand for production capacity for US projects will increase after the strike season - which should increase demand for crew and services. Due to the economic situation, however, advertising and subscription-dependent program providers will continue to act with caution on the market. The contract production market of the public broadcasters, which is important for Germany, could stabilize at the 2019 level.
The mix of media libraries and linear program requirements is likely to contribute to the stability of the industry. How quickly processes will actually be changed by AI remains to be seen and will certainly have different levels of relevance in the individual trades.
Conclusion: Organizing the anniversary edition of the 25th Film Industry Forum in cooperation and as part of the Media Days has paid off. Cooperation is certainly more beneficial to both formats than competition. This year, the forum was financed without subsidies for the first time. That is why we would like to take this opportunity to thank our supporters - especially our long-term solution partners adag Payroll Services , Black Forest Studios , Cattleya , International Film Partners , Ludwig Kameraverleih , OneGate Media , Optical Art and Penzing Studios as well as our association partners.
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(Author: Markus Vogelbacher, Image by International Film Partners)