Hungarian Film Industry Continues Punching Above its Weight

A graduate of Budapest’s prestigious University of Theater and Film Arts, Káel has directed television plays, commercials and the highly acclaimed opera film “Bánk Bán.” Since 2011, he has been CEO of Müpa Budapest. He is well plugged in internationally: a member of the European Academy of Sciences and Arts, the International Academy of Television Arts & Sciences, and the European Film Academy.

Before we spoke, Káel’s office sent me an article published in the U.S. entertainment bible, “Variety,” in which he references the “special film DNA” of the Hungarian film industry as one reason for its success. What did he mean by that?

“I meant that the size of this country has no bearing on why Hungarian filmmakers are so successful,” Káel told me. “The first Hungarian movie, ‘The Dance,’ was made in 1901, just six years after the Lumière Brothers invented the portable motion-picture camera, projector, and printer that revolutionized cinema,” he noted.

“Since then, Hungary has had a very professional film business, and knowledge has been passed down from generation to generation. From Hungary, filmmakers spread outwards to Vienna, Berlin, London and then Hollywood, shaping the industry as they went. Hungarian Adolphe Zukor co-founded Paramount. Fox was founded by Hungarian Wilhelm Fried Fuchs, who Anglicized his name,” Káel notes.

Today, Hungary’s legacy manifests itself in the quality of the professionals who work in its film industry.

‘Easy and Enjoyable’

“Around 30 years ago, when foreign productions started coming to Hungary, the majority of the crew came from abroad, with the remainder being Hungarian,” Káel said. “In 2024, international productions are filming with 80% local crew. A lot of famous directors have told me that the quality of our professionals makes it easy and enjoyable to shoot here.” 

Nowadays, it’s also not just the case that the Hungarians working on movies are only involved at more mundane or technical levels rather than in creative roles. Together with Patrice Vermette, Hungarian Zsuzsanna Sipos won an Oscar for her production design on “Dune” in 2022. This year, Zsuzsa Mihalek won Best Production Design for her work on “Poor Things.”

It’s not surprising, then, that Káel and his team are encouraging more international productions to use Hungarian creatives such as writers, directors of photography and even directors. The National Film Institute (NFI) also supports young Hungarian filmmakers by offering them the resources to make their own projects and get a foot in the door of a notoriously tough industry.

This precious pool of homegrown talent forms part of an ecosystem that includes handsome incentives for foreign productions, world-class resources and the appeal of Budapest and Hungary itself.

This year sees the 20th anniversary of Hungary joining the European Union and introducing its cash rebate system. Speaking to “Variety,” Káel explained, “Hungary was the first in Central Europe to do this, and we are very proud of that.”

Other European countries may offer more than Hungary’s 30% rebate, but there are stringent rules on how it must be used. The Hungarian system is, as Káel told “Variety,” “very simple but very effective.” It has also resulted in a steady flow of funds that have been reinvested.

World-class Facilities

Money has gone to build world-class facilities to make this country even more attractive to foreign productions. Hungary has a unique film laboratory that offers not just the latest in digital but also the analog technology that, as Káel put it, “is popular with A-list directors.”

There is a wealth of different postproduction facilities, including studios that score soundtracks. Francis Ford Coppola, for example, recorded the score of his recent, controversial “Megalopolis” movie in Budapest.

Recently, the Hungarian government has invested in developing the NFI Studios at Fót, increasing its capacity to 12,670 sqm. International productions now have a choice of five or six production facilities within a 20- to 25-minute drive from downtown Budapest.

Investment is necessary because, although the country, particularly Budapest, has certain advantages it’s hard for other countries to beat, Hungary can’t afford to become complacent.

Káel points out that Budapest is “a really eclectic city with plenty of very different districts, parks and streets that can double for any other European city.” With excellent flight connections, a choice of first-rate hotels, a thriving cultural scene and welcoming locals, it may be an exceptionally comfortable city for film productions to work in, but Prague and, increasingly, Vienna also appeal.

Káel didn’t appear phased by this competition. In any case, as he told me, “It’s not just a horse race. We try to collaborate with other Central European countries to show international productions that this entire region is attractive for them.”

The MOZ.GO Festival: Cause for Celebration

This year’s four-day Hungarian motion picture festival will be held in the Veszprém-Balaton region’s three cities as part of the post-event celebrations for them being the European Capital of Culture in 2023. The NFI is also repositioning the most important event in its social calendar.

“The event was previously held in Budapest,” Káel told me. “But now we’ve introduced a summer festival vibe that’s more in line with festivals at tourist destinations such as Cannes, Venice or San Sebastian. Visitors who attend our festival will be able to watch movies in splendid open-air theatres, on lakeside promenades and in historic gardens. We’ll show not just Hungarian movies, but films made in this country and co-productions. It will be a real motion picture feast for fans but also for industry professionals to network.”

This article was first published in the Budapest Business Journal print issue of June 14, 2024.