Fuel, utilities, food: everything is getting more expensive! High wage increases in some exposed areas are fueling the price spiral. Although the demand for content continues to rise, higher budgets are hardly imaginable in Germany - for many reasons. Productions are trying to pass the pressure on to service providers. They, in turn, are battling with the same forces. Digitalization and optimization promise a little relief. At least planning security can be increased with proven partnerships.
The current miptv television trade fair in Cannes also suggests a growing demand for formats and content. The broadcasting families are optimizing their production units with new structures, such as "ZDF Studios". For the industry here, the production conditions in Germany are relevant, and occasionally also in other European countries. What factors determine the capacity utilization of filmmakers and film technology companies?
Thanks to the new sustainability rules that the film industry has imposed on itself, established service providers offer stability and planning security for production companies. Technical innovations are based on established processes that are usually developed directly in the customer relationship and together with those involved. A portfolio of such outstanding industry participants can be found here: Solution Partner .
Our market for fiction is divided into two areas: classic TV projects such as movies, series and series, as well as premium programs for cinemas and streamers. A large proportion of traditional commissioned productions are still awarded by public broadcasters. Here, there are effective answers to burning issues such as the shortage of skilled workers and social sustainability, with continuing education offers and the broadcasting pension fund. However, the cost pressure from the institutions naturally also has an impact on production budgets. Many well-established routines create economies of scale that make the overall costs seem manageable. Incalculable cost drivers such as energy costs and generally rising living costs also increase the pressure here.
The premium market does not only live from local products. International productions enable the development of special resources and expertise, the expansion of skilled workers and generally the increase in the attractiveness of the entire industry in the general labor market. Good salaries have long been paid in trades and new industries. The glamour effect of stars and successful formats can make a contribution here. But international products in particular are increasingly ending up in other countries. And even worse, major German projects are also moving away.
The blame lies with a complicated, fragmented funding system that accommodates local producers but is not competitive on a global scale. Big players like Studio Babelsberg have been addressing the problem for years. The increasing demand for sustainable forms of production can be an advantage in the long term. Ultimately, however, the decisive factor is the power of money.
Cinema is experiencing a renaissance and can help to support the local premium market. Due to the massive commitment of resources to the war in Ukraine with millions of refugees, especially in Eastern Europe, typical production countries such as Poland, the Czech Republic and Hungary are coming under pressure. However, a lack of skilled workers and funding in Germany is currently not attractive enough as an alternative offer.
This is all just complaining at a high level, because skilled workers and technical companies are working at full capacity. However, the concessions for today's budget bottlenecks should be seen as an investment in the future, even by those who are already benefiting from the advantages today.
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