Babelsberg Studio is experiencing financial losses as a result of the ongoing Hollywood strike.
Last year's prolonged work stoppage by screenwriters and actors in the USA brought about issues and setbacks in productions at the Potsdam film studio Babelsberg. As per their recently released 2023 financial report, the studio suffered substantial financial losses, estimated to be in the millions. Previously, "Märkische Allgemeine" had reported this story.
One of the productions affected was a movie project directed by Wes Anderson ("Grand Budapest Hotel", "Darjeeling Limited"). The annual report mentions a significant decrease in orders across all business sectors of Studio Babelsberg.
The revenue took a substantial hit, dropping from around 108.7 million euros in 2022 to approximately 21.1 million euros in the previous year. The studio group closed 2023 with a deficit of around 3.1 million euros, compared to a profit of around 2.8 million euros in the preceding year.
The losses could have been even more substantial if not for the financial aid of around 6.5 million euros by the US parent company of the film studio, the Cinespace group, affiliated to the real estate fund TPG Real Estate Partners. Due to the poor order situation, many employees were put on short-time work.
The impact of the Hollywood strike is still noticeable in 2023. According to the annual report, "Studio Babelsberg AG" is directly affected by the cancellation of a series sequel at least once in the 2024 fiscal year. However, the report also predicts a notable increase in revenue for the group compared to 2023, primarily due to the resumption of paused and postponed productions scheduled for 2024. Despite anticipating another loss, it will be significantly lower than in the previous year, as stated.
The Babelsberg studio group, famous for its location in Potsdam, was significantly impacted by the Hollywood strike last year. The cancellation of a series sequel is reportedly affecting "Studio Babelsberg AG" in the upcoming 2024 fiscal year.
