German pubcasters ARD and ZDF have raised their investment in subsidized filmmaking by 10% per year for the next three years. The increase brings their total annual investment in German-made productions and co-productions, mainly state-subsidized art-house fare, up to25.25 million marks ($ 15.8 million).

In return, TV rights for the films produced under the deal go to the two stations.

At the same time, private stations are threatening to retract their film subsidy contributions (though that totaled as little as $ 3.7 million last year from all five stations) if new advertising restrictions meant to go into effect in June are not rethought.

According to Ursula Adelt, director of the private TV lobby in Bonn, the new advertising restrictions will especially affect the purchase of feature films.

The new restrictions permit only one advertising break in a film under 90 minutes (two in films over that time).

Adelt estimates the loss in ad revenue could be as high as 270 million marks ($ 164.7 million).

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