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Hollywood production shifts amid changing incentives
California’s film industry faces challenges
Recent data indicates a significant decline in filming activity in Los Angeles, reaching historically low levels. Industry leaders have cited California’s slow response to global production incentives as a critical factor. In response, state officials have proposed raising the cap on tax relief programs to attract more filmmakers. Despite these efforts, the impact on the local industry remains uncertain.
Hungary emerges as a filming destination
Contrasting California’s struggles, Hungary has successfully positioned itself as a sought-after location for film and television production. At the heart of this effort is the National Film Institute of Hungary, which collaborates with the Liszt Institute New York to organize the Made in Hungary Film Festival. This festival, recently celebrated in Los Angeles, showcases both domestic and international productions filmed in Hungary, highlighting the country’s attractive incentives.
Celebrating film at the Made in Hungary festival
The festival concluded with a vibrant cocktail reception featuring red, white, and green macarons, reflecting the Hungarian flag. Among the honored films was “Poor Things,” directed by Yorgos Lanthimos, which won multiple Oscars, including an award for production design by Hungarian set decorator Zsuzsa Mihalek. This recognition underscores Hungary’s growing influence in the film industry.
Hungary’s film industry infrastructure
Ákos Bertalan Pal, CEO of the National Film Institute, emphasized the reliability of Hungary’s production staff. The institute is finalizing an economic study that highlights the positive impact of the film industry on the national budget, job creation, and GDP growth.
Investments pay off
Since establishing the National Film Institute a few years ago, Hungary has become a hub for international productions. High-profile projects such as Angelina Jolie’s “Maria” and Brady Corbet’s “The Brutalist” have chosen Hungary for their filming needs.
In 2023, Hungary saw production spending reach an all-time high of $910 million, a significant increase from $183 million in 2018. This growth includes expanding studio facilities, with the NFI adding four new 2,500-square-meter soundstages, bringing total capacity to 12,670 square meters.
Hungarian film industry leaders
Among notable industry figures attending the festival were producers and directors committed to showcasing Hungary’s burgeoning film industry. They spoke about the country’s top-notch production capabilities and the collaborative spirit that drives success.
Advantages for filmmakers
Hungarian film commissioner Csaba Káel detailed the advantages Hungary offers to filmmakers, emphasizing the comprehensive support provided by the National Film Institute. Established in 2020, the institute serves as a central organization for film production, managing the film fund, studios, archives, and laboratories. This integrated approach creates a seamless experience for international and domestic filmmakers.
Incentives and benefits
One of Hungary’s major attractions is its unlimited tax rebate program, offering a 30 percent rebate without a cap. This policy makes it economically viable for filmmakers to produce high-quality projects while enjoying the country’s cost-effective services. Director Brady Corbet of “The Brutalist” noted that Hungary’s pricing reflects true costs, making it an attractive option for productions. The tax rebate’s extension for another six years further solidifies Hungary’s position as a competitive filming location.
Advanced studio systems
Hungary boasts a well-developed studio system, with five major studio complexes in and around Budapest. The NFI’s state-owned studios work in collaboration with four private studios to accommodate increasing production demands. During the COVID-19 pandemic, the country expanded its studio system, adding four new soundstages. By early next year, studio capacity is set to increase by 22 percent, reaching 12,000 square meters.
Attracting talent and crews
Predictably, Hungary is a cultural hub, offering excellent amenities and a supportive environment for talent and crew. High-profile productions like Angelina Jolie’s “Maria” and Kate Winslet’s “Lee” have enjoyed Hungary’s rich cultural scene, world-class hotels, and exceptional cuisine and wine. Notably, Winslet returned to Budapest to watch her movie’s premiere with the local crew, underscoring the strong bonds formed during production.
Hungary’s film industry not only provides top-tier filming locations but also fosters educational opportunities. Investment in state-of-the-art digital studios ensures that students and professionals can access cutting-edge technology. The country is a leader in postproduction and scoring, with Francis Ford Coppola choosing Budapest to score his film “Megalopolis.” With eight orchestras available, Hungary offers unmatched resources for filmmakers.
Future aspirations
Hungary’s commitment to elevating its film industry is evident. The nation aims to produce higher-quality content and strengthen its position as a hub of European film. Plans for establishing a film market will facilitate collaboration and idea exchange between East and West, enhancing co-productions and distribution networks.
With such a dynamic and supportive environment, Hungary continues to shine in the international film industry. Share this insight with your network and stay tuned for more updates on the world of cinema and television.
