Open Studies in European Cinema. The Restructuring of UFA under Klitzsch
In 1926 UFA suffered severe financial losses. The superproductions Metropolis and Faust weren’t finished on time and had run up huge bills. Deutsche Bank was prepared to force the company into bankruptcy unless a new source of capital was found.
The extreme nationalist Alfred Hugenberg quickly made the most of the his opportunity and acquired the majority of the share capital. Hugenberg installed his protege Ludwig Klitzsch at the helm of UFA. Klitzsch swiftly moved to restructure the company along Hollywood models of best practice. He also started to diversify into other media communications areas specifically sheet music and gramophone records.
The Central Producer System
Klitzsch’s first move was to install the central producer system. Under the old management Erich Pommer had given his leading directors the right to use the Director unit to help creatre more artistic films, with the directors having a relatively free hand over what they did and what they spent. The central producer system ensured a tight control over all aspects of the film from budget to shooting schedule. Klitzsch’s restructuring enabled UFA to start breaking even and helped them to raise the money to invest in sound
They achieved managed to ahcieve the move to full sound production in just over a year. In order to make this hasty transistion Klitsch engineered a deal with UFA competitior Tobis-Klangfilm licensing their technology rather than going down the expensive route of re-inventing their own.
There is no doubt that the financial restructuring and ensuing business model put UFA firmly back into business. As Germany slid deeper into depression with unemployment reaching arounf 8 million in late 1932 by 1930-31 UFA was in the black. Not only had it it done well in the domestic market but it had agressively and successfully marketed its foreign language versions in France and the UK as well as continuing to develop on the music side as another income stream.
New directors new kinds of film
This financial recovery was achieved in spite of (or because of) the loss of the top directors under previous management. Murnau had gone to America, Lang had started his own production company after Metropolis, Pabst had started working for Nero Films and E. A. Dupont had gone to the UK.
With the coming of sound musicals and comedies became the staple of UFA production with the development of international stars. The Blue Angel 1929 / 30 starring Emil Jannings and making Marlene Dietrich an international star is perhaps the most famous of these films.
Other films of this ilk included The Congress Dance (1931) dir Eric Charell with Lilian Harvey, Lil Dagover and Conrad Veidt.
Above new favourite of the audience Lilian Harvey in The Congress Dance while below Lil Dagover and Conrad Veidt provide an in depth quality cast.
There were also oddball comedies such as Viktor and Victoria
which was made on the cusp on the Nazi takeover of power. According to the hyperlinked articled it became the box office number one hit in 1933. Sabine Hake has it recorded as a top seller for 1934.
Throughout the depression UFA was able to provide circuses but no bread, that role fell to the Nazis.
Klitzsch also started to institute changes in SPIO and try and follow the Hollywood model of an industry self regulatory regime which would serve to help control supply and reduce concerns about overproduction and consequent falling incomes for all.
Elsaesser considers that overall the restructring of UFA was a necessary step although he was thankful for the earlier model followed by Pommer because some of the great films of the Weimar period still admired today would never have been made. In terms of politcs and ideology Elsaesser is of the opinion that despite criticisms from the left it was a business imperative rather than an ideological one that drove UFA after Hugenberg took over and until the Nazi regime became firmly established.