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Hungarian Edition
Last year, the Hungarian film industry faced significant setbacks due to the prolonged strike of U.S. screenwriters and actors, causing a split in production schedules. However, since January, the industry has experienced a resurgence, fueled by the influx of canceled and postponed foreign productions.
Current trends suggest that 2024 could be the first year where the volume of Hungarian film productions surpasses USD 1 billion.
Top Filming Location
Hungary is currently one of the top 10 filming locations globally, primarily serving overseas studios. In Europe, only the U.K. film industry operates on a larger scale. Industry estimates indicate that nearly 20,000 people are employed in Hungary‘s film sector.
Two decades ago, Hungary‘s work-for-hire film production volume was around HUF 3-4 billion annually. Following the implementation of the Hungarian Film Act in 2004 and the introduction of automatic tax refunds, this figure surged tenfold to nearly HUF 30 billion within three years. By the late 2010s, the industry had achieved another significant milestone, spending HUF 200 billion in 2019 and setting a record of HUF 300 billion in 2022.
A Record-Breaking Year
The momentum of 2022 carried into 2023 with a strong start and expectations for another record year. However, strikes by U.S. screenwriters in early May and U.S. actors in mid-July disrupted this trajectory. While the screenwriters’ strike caused a mid-term slowdown, the actors’ strike led to an immediate halt in significant productions, as major players were unavailable to resume filming.
As a result, the second half of 2023 saw limited filming, focusing on lower-budget European and independent productions, capping industry spending at around HUF 200 billion.
Strong Upturn Expected in 2024
With the end of the strikes, a robust upturn was anticipated for 2024, confirmed by the year’s initial months. Industry spending is expected to surpass USD 1 billion for the first time, reflecting current trends.
This surge in spending may cause disruptions in the 30% cost reimbursement payment scheme, as the available funding for 2024 is capped at close to HUF 70 billion. The high demand could lead to a queue for grant allocation.
Preparing for Growth
To capitalize on growing international demand, Hungary must focus on infrastructural development and enhancing the added value of local work. Investments are underway at NFI Studios and Astra Film Studios in Fót and Mogyoród, with plans to modernize and expand existing facilities.
Increasing the involvement of Hungarian crew members in foreign productions is crucial, as is shifting focus from physical work to film post-production. The establishment of several high-standard post-production studios in recent years has been a positive development, acquiring valuable references and setting the stage for further growth.
As Hungary prepares for a potentially record-breaking year, these strategic developments will be essential to sustaining and expanding its film industry’s success.
Source: BBJ
