The Performance of German Motion Pictures, Profits and Subsidies: Some Empirical Evidence

This paper pursues three objectives. First, it seeks to identify the determinants of performance of German motion pictures in terms of cinema admissions and producers' rates of return. Second, against the background of heavy subsidization of the German film industry, it discusses two types of subsidy allocation: committee principle allocation and reference principle allocation. Third, the profitability of the industry is considered as the presumed economic non-viability of the industry constantly recurs in the public debate as an argument for subsidies.