How Inflation Is Rewriting the Rules of the Film Industry

Inflation is the big monster that isn’t hiding under your bed - it’s standing in plain sight, casting a heavy shadow over your business. It affects companies of all kinds, but here we’ll focus on its impact on our world: filmmaking and production.

Working primarily in poorer European countries means inflation hits us hard. Take Bulgaria, for example. Over the past three years, inflation has hovered around 13.5%. Even through that period, the country is still known for its competitive prices and highly skilled crews - a golden combination that helped major companies bring their dream projects to life without breaking the bank. But things are changing. Costs are rising, and when travel, accommodation, and other expenses are added to the mix. It is getting harder to keep Bulgaria the clear bargain that it once was. As a service company, we must get creative in how to attract more companies to shoot here.

There is, however, a bright side: local crews are finally earning what they deserve. Their exceptional work is being valued more than ever. This is the double-edged sword that honest production companies face - fair pay for the people who make everything possible, but tighter margins and shrinking budgets on our end.

So, how do we keep going?

For smaller projects, we try to open doors for the next generation. We bring more up and coming professionals, giving young people a real chance to learn, grow, and make the connections that will shape their future careers.

Still, the global business climate is tightening, and the pressure is felt across the entire industry. In the Balkans, the impact usually arrives with a delay - about a year after the rest of the world starts cutting back - but when it hits, it pushes everyone in the crew to their limits. It’s unsettling, no doubt. Yet, we remain optimistic. After every storm, the flowers bloom. So, we keep moving, keep adapting, and, above all, keep hustling.

So how does this affect business? Inflation, simply put, is a general increase in prices. But how does it affect the industry - and our business specifically?

Naturally, everything becomes more expensive. The costs of consumables rise - electricity, fuel, and so on.

As prices rise, people also start demanding higher wages, especially freelancers who negotiate individually. This pushes our own costs even higher.

On the other hand, this reduces the competitiveness of the region, because it stretches these same budgets we had one or two years ago, when inflation was lower. At the same time, the brands are also cutting their budget because everything is more expensive for them as well. So, they reduce spending to control their own costs.

The result is a double squeeze: we have smaller budgets while our own prices are higher, creating a conflict that directly affects our business.

Then, of course, as a provider you must adapt - you lower your rates and in turn trim your margins. Then, to keep the same income, you must go for a bigger volume - so you push even more in attracting new clients.

Naturally, the Balkans are getting that bit more expensive, but it's not all for nothing - crews are better than ever, and local equipment rentals can rival the best in Europe.

Short-term adjustments are possible, though.

It is our job as a service company to make that process seem as smooth as possible - keeping a short-term price stability but also following the global inflation rates and moving in pace with the industry. In the end, inflation hits everybody everywhere - and in that context being competitive is a subjective term regarding what and who you compare yourself to. We can safely say that the Balkans are still one of the most attractive filming locations in the world.

In the end, inflation isn’t just a temporary obstacle for the film industry - it has reshaped the entire production landscape. But the industry has adapted. Markets recalibrate; productions shift across borders, and pricing eventually stabilises as supply and demand rebalance.

Inflation may raise costs, but it also forces the industry to evolve, innovate, and become more efficient. Those who can adapt quickly will continue to thrive, no matter where the global economy moves next.