Why has UFA managed to stay in business

UFA, a German film studio, was established in 1917 when the German government consolidated most of the nation’s leading studios. They did this to promote the German Culture while also making propaganda for the war. UFA soon opened multiple theatres around Germany and with UFA broadening their film genre the company began to rise, a film which instigated this would be Berlin’s lavish Film Palast am Zoo with the premiere of Lubitsch’s Madame Dubarry (1919; also released as Passion), an international hit that did much to open the door for German films in countries where they had been banned since the war.

Later, in 1923, the company acquired one of the worlds largest production companies as a result of its merger with the film company Decla Bioscop. However Hollywood films became increasingly popular in germany resulting in UFA having a financial crisis and making low budget films for the next few years

!927, on the brink of financial devastation the company was bought by  Alfred Hugenberg, a future Hitler supporter. The company then went bankrupt in 1945.

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