Declining revenues and limited international competitiveness – the latest Medienbarometer reveals a generally pessimistic outlook among creative companies in the capital region. However, game developers were notably more optimistic, partly due to high hopes for a potential tax incentive scheme.

The 22nd edition of the Medienbarometer for Berlin and Brandenburg’s creative technology sector paints a sobering picture. In this representative survey conducted by the Goldmedia institute, 44 percent of respondents expect a decline in revenue. Furthermore, 56 percent anticipate a worsening economic environment over the next three years, and only 21 percent believe Germany is well positioned to compete on the international stage.

"The study's findings show that creative technology companies in the capital region are both grappling with major challenges and undergoing significant transformation," says Jeannine Koch, CEO of medianet berlinbrandenburg. Dr. Hinrich Holm, Chairman and CEO of Investitionsbank Berlin, adds: "This year's Medienbarometer delivers a clear and sobering message. The mood among media companies has hit a low. It's evident that the industry cannot insulate itself from the broader economic climate."

From the perspective of the games industry, however, the picture is somewhat more nuanced. This sector responded with significantly more optimism in some areas. For instance, 45 percent of games companies surveyed expect sales to grow, while only 32 percent foresee a decline.

The primary source of uncertainty in the games industry relates to funding. When asked about the biggest challenges they face, 31 percent cited the current freeze on funding applications. Meanwhile, only 23 percent each mentioned dependence on large platforms and the need to keep pace with rapid innovation cycles as major concerns.

"The sharp decline in the business climate index compared to previous years is partly due to suspended funding programs in the film and games sectors during the survey period," explains Jeannine Koch. "The fact that several of the industry’s demands remain unmet continues to create uncertainty in the market. However, there are now positive signals from the new federal government, such as plans for the introduction of tax incentive models and investment obligations in the film industry, as well as more permanent funding for the games sector."

Separate questions in the Medienbarometer also underscore the games industry’s strong expectations regarding tax-based incentives. Over 60 percent believe such a model would increase the number of international productions in Germany, enhance international competitiveness, and offer more planning security. Only two percent said it would not impact the current situation.

In terms of Berlin's competitiveness as a games hub, the Medienbarometer also yielded interesting insights. Nationally, 60 percent of respondents consider themselves well or very well positioned. Internationally, however, only 14 percent share that confidence.

"The Medienbarometer clearly shows that the audiovisual creative industries are under considerable pressure. To drive innovation and growth, financial and structural framework conditions must be urgently improved. The barometer identifies key areas for action – less bureaucracy, stable funding structures, and tax incentives," says Helge Jürgens, Managing Director of New Media Funding at Medienboard Berlin-Brandenburg. "As for the games industry: this forward-looking sector, with its high level of technological expertise and increasingly AI-driven production workflows, is already influencing other areas of the economy. Berlin-Brandenburg has great potential to grow and thrive as a competitive media location."


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Stephan Steininger
Stephan is Editor in Chief
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