Establishment from 1917 An early step towards the founding of UFA was taken on 13 January 1917, with the creation of the Bild- und Filmamt (Bufa) by Germany's Supreme Army Command. Formed as a reaction to the perceived advantage of Germany's enemies in the realm of film propaganda, Bufa's task was to use film for psychological warfare. The plans envisaged by the German General Staff – especially those of
Erich Ludendorff – went far beyond the creation of Bufa. Ludendorff foresaw a large-scale, state-controlled film corporation that would serve national interests. In this spirit,
Universum-Film AG (UFA) was founded as a consolidation of private film companies on 18 December 1917 in Berlin. The company's starting capital was 25 million Reichsmark (equivalent to € million in ): among the contributors were the German government, the
War Ministry and
Deutsche Bank. The board chairman of the new company was Deutsche Bank director Emil Georg von Stauß. Prior to establishing the company, the General Staff had considered taking over the e. V. (DLG), which had been founded in 1916. This agency was too much under the influence of heavy industry and, in particular, of
Alfred Hugenberg, chairman of
Krupp. Hugenberg would later take over UFA in 1927. Three main film companies formed the nucleus of UFA from the end of 1917: •
Messter Film, owned by
Oskar Messter, a dominant German producer •
PAGU (Projektions Union), originally formed by
Paul Davidson in
Frankfurt, with the
Templehof Studios in Oberlandstraße in
Berlin-Tempelhof and in Weissensee; and the Union-Theater (U.T. or U.T- Lichtspiele) chain of some 50 cinemas • The entire German operation of
Nordisk Film (founded in 1906 by
Ole Olsen) including Nordische Films, the production company Oliver-Film of , cinemas, and a distribution company, was bought by UFA in 1918 More companies joined UFA not long after: •
Joe May's May-Film company, with film duplicating plant and glass-house studios at
Weissensee Studios (next door to PAGU). The studios were previously owned by
Continental-Kunstfilm, whose production had slowed since 1915 and didn't join UFA. •
Greenbaum-Film (previously Vitascope before its brief merger with PAGU in January 1914) joined in 1919, but the deal was disastrous for
Jules Greenbaum who died in a mental institution in 1924. •
Decla-Bioscop. Originally founded by Jules Greenbaum in 1902 as
Deutsche Bioskop AG, sold to Carl Moritz Schleussner in 1908 and moved to
Neubabelsberg); merged in March 1920 with
Erich Pommer's Decla-Film which had been formed in 1915 out of the confiscated assets of the German branch of the French
Éclair (
Deutsche É
clair, thus Decla) to form Decla-Bioskop: Taken over by UFA in October 1921. UFA continued to sign production agreements with various independent producers: •
Deulig from October 1920, previously (DLG) •
Cserépy Film, founded by
Arzén von Cserépy, merged with UFA in 1922 • Gloria-Film AG, founded by
Hanns Lippmann •
Heinrich Bolten-Baeckers' BB-Film • Rex-Film, founded in 1917 by
Lupu Pick • Fern-Andra Vertriebsgesellschaft, the film production company of
Fern Andra •
Ossi-Oswalda-Film contracted to UFA from 1925 • The
distributor Hansa-Film
Silent era (1918–1930) Given that Germany had been – and continued to be – largely cut off from film imports due to World War I, the new company had ideal conditions for their conquest of the German market. The mission of UFA at the time of its founding was the production of films – feature films, documentaries, cultural films and weekly headline (newsreel) films – designed to function as propaganda for Germany abroad. However, after mounting tensions between the company's founding members, Deutsche Bank was able to prevail and implement their approach to film production as a business rather than for military objectives. Instead of propaganda films, UFA now produced elaborate entertainment films such as
Sumurun (
Ernst Lubitsch, 1920). UFA was already in 1921 producing the lion's share of German feature films, and in that year it was privatized. Starting in 1922, large ateliers in
Neubabelsberg (today's
Babelsberg Studio) and on in
Berlin-Tempelhof were made available for film production. In 1926, the facilities were expanded by means of the construction of the largest studio hall in Europe at the time. In 1923, after and others were taken over,
Erich Pommer became head of all production operations and discovered and fostered many stars, including
Emil Jannings,
Pola Negri,
Conrad Veidt and
Lya de Putti. During this era UFA was a leader in the time of the
German Expressionism, experienced a further boom, and emerged as a direct competitor to Hollywood with films such as
Dr. Mabuse the Gambler (1922),
Die Nibelungen (1924),
Variety (1925) and
Faust (1926).
Hugenberg (1927–1933) in
The Blue Angel (1930), with UFA logo at lower left In 1927, UFA found itself in serious financial trouble. After the stabilization of the German currency starting in November 1924, the German film industry in general entered a period of crisis: foreign sales stalled due to low profit margins, and the German market became profitable once again for American film giants. The resulting concentration on a few large German film companies, which came together to unite production, distribution and presentation under one UFA's managers made severe miscalculations with regard to two large-scale productions, and
Metropolis in 1924-1926. This situation was made even worse as the result of a gag contract (the
Parufamet agreement) they had entered into in 1925 with the American companies
Paramount Pictures and
Metro-Goldwyn-Mayer. In March 1927, with the company facing bankruptcy,
Alfred Hugenberg – Chairman of the
German National People's Party and owner of the Scherl-Gruppe, a powerful media corporation – bought the company. The new general director was Ludwig Klitzsch; Hugenberg himself took over the chairmanship of the supervisory board; his deputy was banker
Emil Georg von Stauß. At first, nothing changed in UFA's production policy. In 1928,
Erich Pommer was replaced as head of production by
Ernst Hugo Correll, who led the company through the transition to talking pictures or "talkies". UFA gained an advantage over smaller companies in the realm of talkie production as a result of a contract with Tobis-Klangfilm, which simplified the licensing situation for UFA. Nevertheless, UFA has recorded unsurpassed artistic successes with films such as Fritz Lang's
Metropolis (inscribed on
UNESCO's
Memory of the World Register, the first film thus distinguished) and
Woman in the Moon to this day.
Asphalt (
German Realism) or entertainment movies such as
Melody of the Heart or the musical film
The Three from the Filling Station are produced by the UFA. In 1930, the company enjoyed worldwide success with the film
The Blue Angel, starring
Marlene Dietrich and
Emil Jannings, directed by
Joseph von Sternberg. ==Nazi era==