Why has UFA managed to stay in business?:

UFA was a German motion-picture production company. It created outstanding and technically brilliant films during the silent era. Located in Berlin, its studios were the best equipped and most modern in the world. It encouraged experimentation and imaginative camera work.

UFA was established in 1917; Its purpose was to promote German culture and enhance Germany’s international image in the years following World War I.

In 1923 the studio acquired one of the world’s most extensive production facilities. This, however, overlapped with the increasing popularity in Germany of Hollywood films and resulted in financial crises that compelled the studio to produce mostly inexpensive documentary films for the next few years.

On the brink of financial ruin, the company was purchased in 1927 by Alfred Hugenberg, a future Hitler supporter who mandated that the company devote itself to films that promoted German nationalism. The resulting films proved popular in Germany, but rising production costs and a shrinking international market led to large deficits causing them to shut down. A new UFA was launched in 1956 but eventually went bankrupt.