Another Cliffhanger, and Location/Incentive Options for Producers!
The global incentive landscape continues to challenge and compete with the U.S., as Germany’s film and TV funding system is undergoing a significant overhaul, starting in 2025. The German parliament recently passed a partial reform to its long-debated new film law, bringing both opportunities and challenges for the industry.
Germany’s 30% rebate increase is a win for Hollywood, but further reforms—especially the potential for a tax credit and expanded funding—could determine how attractive the country remains for international and local productions. As debates continue, the film world will be watching closely.
This is a pivotal moment for German film funding and its role on the global stage. What are your thoughts on these changes? Let’s discuss!
Key Highlights Include:
1. Increased Incentives for Hollywood and International Productions:
- The existing cash rebate has been raised from 25% to 30%, boosting Germany’s competitiveness for major projects. Recent beneficiaries include “Riddick: Furya,” “The Hunger Games: The Ballad of Songbirds & Snakes,” and “The Matrix Resurrections.”
- However, caps remain: $26M per film and $10.4M per TV series, with a total annual fund of $374M.
2. Support for Local Productions:
- Streamlined subsidy processes funded by levies (e.g., movie ticket sales) aim to support domestic projects.
3. Future Developments to Watch:
- Two additional pillars of reform—introducing a tax credit and an investment obligation for streamers—are expected to go back to parliament in late 2025.
- The proposed streamer investment obligation could inject $624M annually into German film and TV, requiring streamers to reinvest 20% of their German revenues, with 70% allocated to German-language productions.
Although there are some challenges, as the current funding pot may fall short by late summer for new projects, as demand grows. And the Streamers oppose the investment obligation, citing unsustainable economic pressures.
Let's see what else 2025 will bring...Happy New Year!!!
