From the windswept fjords of Norway to the sun-drenched boulevards of Cannes, Europe has long been the cultural crucible of global cinema.
Yet for decades, the continent’s film industry has faced stiff competition—not just from across the Atlantic, but increasingly from within, as Britain’s post-Brexit film sector forges its own path. So where do the EU’s filmmakers stand today in the ever-evolving contest of global cinema?
Despite the challenges posed by streaming platforms, pandemic shutdowns, and geopolitical fragmentation, the film industry in EU member states is showing cautious signs of resurgence. There is vibrancy in auteur-driven works, strategic growth in public-private partnerships, and even a few blockbuster box office surprises that have momentarily stolen the limelight from Hollywood’s long-dominant machinery.
Continental Powerhouses: France, Germany and Spain
France remains the undisputed heart of European cinema, not merely for its artistic reputation but also for the sheer robustness of its domestic infrastructure. The Centre national du cinéma et de l’image animée (CNC) continues to play a pivotal role in underwriting productions through generous subsidies and tax incentives, a model often envied by its transatlantic counterparts. Gaumont and Pathé, two of the world’s oldest studios, continue to thrive, alongside newer players such as StudioCanal, which has achieved cross-border success with co-productions like Tinker Tailor Soldier Spy and the Paddington series (the latter in collaboration with the UK).
Metropolis (1927), directed by Fritz Lang, the first film to be inscribed on UNESCO’s Memory of the World Register
In Germany, Constantin Film and UFA (a Bertelsmann subsidiary) dominate a diversified landscape. Constantin, best known for the Resident Evil series, straddles the line between commercial appeal and European flavour.
The German industry also benefits from a decentralised funding model, with powerful regional bodies such as the FilmFernsehFonds Bayern offering support alongside federal institutions like the German Federal Film Board (FFA).
Spain, too, has quietly carved out a dynamic niche. Atresmedia Cine and Telecinco Cinema are the engines behind many of the country’s domestic hits.
With successes like The Platform (El Hoyo)—which gained international popularity via Netflix—and the Oscar-winning Pain and Glory by Pedro Almodóvar, Spain is asserting a balance between homegrown storytelling and global distribution.
Italy, the Netherlands, Sweden, and Belgium contribute vigorously as well, with state-funded programs nurturing both arthouse darlings and genre cinema.
Notably, Italy’s Rai Cinema has backed a variety of prestige films, and Belgium’s Caviar Films has emerged as a studio to watch following its involvement in trans-European projects and advertising work that channels into feature funding.
Box Office Dynamics: Local Heroes and Global Aspirations
While Europe’s cinematic landscape is rich in artistry, the region has often struggled to produce box office hits capable of rivalling Hollywood. Nevertheless, recent years have offered some optimism.
France’s Asterix & Obelix: The Middle Kingdom (2023) and Kaamelott – Premier Volet (2021) both posted domestic grosses exceeding €20 million, cementing their places as popular crowd-pullers. In Germany, Die Schule der magischen Tiere (The School of Magical Animals) series found significant success, especially among younger audiences.
Meanwhile, Spain’s Father There Is Only One 3 (Padre no hay más que uno 3) raked in over €15 million, buoyed by the popularity of its comedic domestic themes.
Image: By NEON – IMP Awards, Fair use, https://en.wikipedia.org/w/index.php?curid=71522525
Perhaps more telling is the increasing willingness of EU studios to engage in cross-border co-productions. Triangle of Sadness, a Swedish-German-French-British co-production, won the Palme d’Or at Cannes in 2022 and achieved impressive global receipts for a film of its type, grossing over $25 million worldwide.
Streaming has also played a critical role in expanding the reach of European cinema. Germany’s Blood Red Sky, a Netflix horror-thriller produced by Rat Pack Filmproduktion, became one of the most-watched non-English films on the platform. Similarly, France’s Lupin series, starring Omar Sy, demonstrated the potential of European IP in capturing international attention.
Yet despite these individual successes, EU cinema still lags far behind Hollywood when it comes to global box office share. According to the European Audiovisual Observatory, European films accounted for just 26% of total box office receipts in Europe in 2023, with American productions commanding over 60%.
Hollywood’s Continuing Grip—and the Streaming Factor
It would be naïve to understate the persistent dominance of Hollywood. Even within EU markets, the top-grossing films of 2023 were overwhelmingly American: Avatar: The Way of Water, Oppenheimer, and Barbie swept across multiplexes in Paris, Berlin, Madrid, and Rome alike.
What has changed, however, is how European audiences consume media. The rise of streaming has undermined Hollywood’s traditional dominance in subtle ways. European filmmakers, previously limited by language and national boundaries, are now finding new audiences globally.
Netflix, Amazon Prime Video, and Disney+ have invested significantly in European content, both to meet EU content quota regulations and to expand their subscriber base. This has led to a production boom—though one not without concerns. Critics warn of cultural homogenisation, the crowding-out of smaller domestic films, and an over-reliance on Anglo-centric genres and aesthetics.
Yet it’s also true that streaming has allowed more diverse European voices to flourish. Poland’s High Water and Denmark’s Borgen: Power & Glory received widespread acclaim, challenging assumptions about the exportability of non-English-language drama.
The UK Factor: Friends or Rivals?
Post-Brexit, the UK film industry occupies an awkward position—no longer part of the EU’s cultural framework, yet still geographically and economically entwined with the continent. London continues to be a magnet for international productions thanks to Pinewood Studios, Elstree Studios, a skilled English-speaking workforce, and favourable tax conditions.
Many British filmmakers and actors still collaborate extensively with EU partners. Films such as The Favourite, The Banshees of Inisherin and All of Us Strangers are emblematic of the creative intertwining that persists despite political separation.
Nevertheless, Brexit has introduced real complications. Co-productions involving EU funds via the MEDIA programme have become harder for British studios to access. Movement of talent across borders has been restricted, and the loss of Erasmus+ and Creative Europe affiliations has generated concern among young British creatives.
Despite these barriers, the UK remains more commercially aligned with Hollywood than its EU peers.
With many of its most profitable films (such as James Bond and Harry Potter) essentially operating as transatlantic ventures, Britain continues to outperform the EU in terms of global box office returns—even if its domestic production is numerically smaller.
A New Cultural Strategy?
For the EU, the path forward seems to lie not in emulating Hollywood, but in leveraging its unique diversity. The strength of the European model has always been its decentralisation—its mosaic of cultures, languages, and cinematic traditions. Recent moves by the European Commission to boost co-production funding and invest in digital innovation reflect a recognition that collaboration, not competition, is the key.
Moreover, the proliferation of regional film festivals—from Karlovy Vary to San Sebastián—remains a vital part of the ecosystem, offering platforms for emerging talent and cross-pollination of ideas.
The EU’s challenge now is to scale this fragmented brilliance. With appropriate investment in marketing, digital infrastructure, and cross-border distribution, European cinema may yet capture more than just critical acclaim—it may reclaim its place as a true global force.
In this unfolding narrative of cultural realignment, the EU’s film industry is neither in decline nor in ascendance—it is in transformation. Hollywood will likely continue to dominate blockbuster cinema. The UK will remain a potent but increasingly separate player. But if the EU can maintain its commitment to artistry while adapting to the demands of scale and digital distribution, it may find that the 21st century holds not just a supporting role, but perhaps a starring one.
Main Image: By Gianni Torre from Venice, Italy – 74 Venice Film Festival – 2 September 2017, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=62184045
