The economic situation in German film and TV production remains tense - and is even getting worse, according to the Production Alliance. This is the result of the latest autumn survey of around 370 member companies. The mood in the industry is worse than ever, structural problems are becoming more entrenched and Germany as a film location is "at a point where political decisions are helping to determine its future viability", according to the tenor of the survey.

Industry sentiment continues to tilt

85 per cent of the production companies surveyed rate the economic situation in the film industry as poor or very poor. This figure was 77 per cent in 2024 and 56 per cent in 2022. The outlook for the future also remains pessimistic: three quarters of companies expect the situation to deteriorate further in 2026.

Producers cite falling budgets (93 %), rising costs (92 %), lengthy decision-making processes on the part of clients (86 %) and declining order volumes (80 %) as the biggest negative factors. In addition, 72 % complain about increasing bureaucracy - a constant annoyance in the industry.

"This borders on self-exploitation"

In her assessment of the results, Michelle Müntefering, CEO and spokesperson for the entire board of the Production Alliance, emphasises how dramatic the situation is: the combination of cost increases, budget cuts and a decline in orders is leading to highly precarious working conditions, particularly for small and medium-sized companies. Production at the margins is now the norm. According to Müntefering, the situation is no longer a temporary phase of weakness, but a structural problem that makes political action imperative.

Profit erosion across the board

The key economic figures confirm this assessment: company profits, which were already low in previous years, have collapsed further. The median pre-tax profit is now just 0 to 2.5 per cent - a level that the Production Alliance believes leaves little room for sustainable economic development.

The fiction sector has been hit particularly hard. A third of fiction producers are currently in the red, while another third are operating with margins of no more than 2.5 per cent. According to the survey, this puts the focus on a market structure in which larger production houses in particular could survive in the long term.

Decline in sales for half of the companies

Around half of the companies are experiencing falling sales - more so in the fiction segment than in the non-fiction segment. The gap between rising production costs and shrinking revenues is widening and, according to the survey, is increasingly threatening the economic basis of many companies - regardless of size or genre.

Structural need for reform

The Production Alliance therefore sees Germany as a film location at a critical point. The measures announced in the coalition agreement, for example to strengthen film funding or speed up decision-making processes, must be implemented urgently in order not to jeopardise the future of the production location.