VTFF autumn barometer 2024 published.

Poor economic situation for many companies in view of the failure of the film subsidy reform. Association calls on politicians to take action.

Berlin, 28 November 2024: The failure to reform film funding and the generally poor economic situation are having a full impact on technical and creative service providers in the film and television industry: Significantly more than half of the companies describe their current economic situation as "rather bad or even "very bad" (58 % in total). Service providers do not expect any improvement in the upcoming production year 2025, on the contrary. This is according to the latest autumn barometer from the Association of Technical Film and Television Companies (VTFF), which examines the situation of service providers every year. It is based on a survey of members and other companies in the industry. Overall, the already miserable sentiment values from the autumn barometer in 2023 have deteriorated once again.

The companies organised in the VTFF from the studio, virtual production, rental, costume hire, post-production image and sound, visual effects (VFX) and outside broadcasting sectors have been hoping for the reform of film funding announced by politicians for the current year for over 30 months. The tax incentive model in particular was intended to restore Germany's competitiveness as a film location and finally put Germany back on the map of relevant international production locations. With the cancellation of the traffic light, however, the reform of film funding remains piecemeal and service companies are once again facing a highly uncertain new production year.

The lack of a political framework and the resulting lack of prospects are already having a massive negative impact on the mood in the industry. According to the VTFF autumn barometer, 58% of the companies surveyed describe their economic situation as "rather bad" (41.9 %) or even "very bad" (16.1 %). At 3.2 per cent, only a small minority of VTFF members consider their economic situation to be "very good".

Expectations for returns in the current year are correspondingly low. A total of 69.4 per cent of technical and creative service providers expect stagnating to significantly falling returns.

In view of the failed reform of film funding, which many service providers had hoped would significantly improve their situation, the outlook for the future is bleak. Over two-thirds of companies, 72.6 percent in total, participating in the autumn barometer survey do not expect an upturn in the production year 2025; instead, stagnating sales (33.9 %) and falling to significantly falling sales (38.7 %) are expected. Only a few believe that sales will increase significantly (6.5 %) or increase slightly to moderately (21%).

As a result, 88.7 per cent of companies expect the service provider scene to consolidate. In plain language, the number of service providers is expected to fall, resulting in consolidation due to business closures, insolvency or takeovers. This means that production resources will be irretrievably lost.

"The survey results of the VTFF autumn barometer point downwards year after year," explains Achim Rohnke, Managing Director of the association. "An end to the downturn is not in sight in view of the failure of politics." The upcoming production year 2025 is therefore not a promise for technical and creative service providers, but a threat.

VTFF CEO Rohnke continues to focus on dialogue with politicians. "We are already in dialogue with the decision-makers who will determine media and cultural policy in Germany in the future. The VTFF will do all it can to fight for better conditions in the new production year." The technical-creative service providers have an excellent infrastructure and highly qualified employees to be able to compete internationally. The only thing missing was the legislative and economic framework conditions for the realisation of high-gloss productions in Germany.