The cinema of Germany can be traced back to the late 19th century. The film industry in Germany made major technical and artistic contributions to early film, broadcasting and television technology. Babelsberg became a household synonym for the early 20th century film industry in Europe, similar to Hollywood later. Early German and German-speaking filmmakers and actors heavily contributed to early Hollywood, many of whom were Jewish refugees fleeing Nazi persecution.

Germany witnessed major changes to its identity during the 20th and 21st century. Those changes determined the periodisation of national cinema into a succession of distinct eras and movements.

German movies and German artists earned 230 Oscar nominations and 54 Oscar wins.

History

1895–1918 German Empire

The history of cinema in Germany can be traced back to the years of the medium's birth. Ottomar Anschütz held the first showing of life sized pictures in motion on 25 November 1894 at the Postfuhramt in Berlin. On 1 November 1895, Max Skladanowsky and his brother Emil demonstrated their self-invented film projector, the Bioscop, at the Wintergarten music hall in Berlin. A 15-minute series of eight short films were shown – the first screening of films to a paying audience. This performance pre-dated the first paying public display of the Lumière brothers' Cinematographe in Paris on 28 December of the same year, a performance that Max Skladanowsky attended and at which he was able to ascertain that the Cinematographe was technically superior to his Bioscop. Other German film pioneers included the Berliners Oskar Messter and Max Gliewe, two of several individuals who independently in 1896 first used a Geneva drive (which allows the film to be advanced intermittently one frame at a time) in a projector, and the cinematographer Guido Seeber.

In its earliest days, the cinematograph was perceived as an attraction for upper class audiences, but the novelty of moving pictures did not last long. Soon, trivial short films were being shown as fairground attractions aimed at the working class and lower-middle class. The booths in which these films were shown were known in Germany somewhat disparagingly as Kintopps. Film-makers with an artistic bent attempted to counter this view of cinema with longer films based on literary models, and the first German "artistic" films began to be produced from around 1910, an example being the Edgar Allan Poe adaptation The Student of Prague (1913) which was co-directed by Paul Wegener and Stellan Rye, photographed by Guido Seeber and starring actors from Max Reinhardt's company.

Early film theorists in Germany began to write about the significance of Schaulust, or "visual pleasure", for the audience, including the Dada movement writer Walter Serner: "If one looks to where cinema receives its ultimate power, into these strangely flickering eyes that point far back into human history, suddenly it stands there in all its massiveness: visual pleasure." Visually striking sets and makeup were key to the style of the expressionist films that were produced shortly after the First World War.

Cinemas themselves began to be established landmarks in the years immediately before World War I. Before this, German filmmakers would tour with their works, travelling from fairground to fairground. The earliest ongoing cinemas were set up in cafes and pubs by owners who saw a way of attracting more customers. The storefront cinema was called a Kientopp, and this is where films were viewed for the most part before the First World War broke out. The first standalone, dedicated cinema in Germany was opened in Mannheim in 1906, and by 1910, there were over 1000 cinemas operating in Germany. Henny Porten and Asta Nielsen (the latter originally from Denmark) were the first major film stars in Germany.

Prior to 1914, however, many foreign films were imported. In the era of the silent film there were no language boundaries and Danish and Italian films were particularly popular in Germany. The public's desire to see more films with particular actors led to the development in Germany, as elsewhere, of the phenomenon of the film star; the actress Henny Porten was one of the earliest German stars. Public desire to see popular film stories being continued encouraged the production of film serials, especially in the genre of mystery films, which is where the director Fritz Lang began his illustrious career.

The outbreak of World War I and the subsequent boycott of, for example, French films left a noticeable gap in the market. By 1916, there already existed some 2000 fixed venues for movie performances and initially film screenings were supplemented or even replaced by variety turns. In 1917 a process of concentration and partial nationalisation of the German film industry began with the founding of Universum Film AG (UFA), which was partly a reaction to the very effective use that the Allied Powers had found for the new medium for the purpose of propaganda. Under the aegis of the military, so-called Vaterland films were produced, which equalled the Allies' films in the matter of propaganda and disparagement of the enemy. Audiences however did not care to swallow the patriotic medicine without the accompanying sugar of the light-entertainment films which, consequently, Ufa also promoted. The German film industry soon became the largest in Europe.

1918–1933 Weimar Republic

The German film industry, which was protected during the war by the ban on foreign films import, became exposed at the end of the war to the international film industry while having to face an embargo, this time on its own films. Many countries banned the import of German films and audiences themselves were resisting anything that was "German". But the ban imposed on German films involved commercial considerations as well – as an American president of one of the film companies was quoted, "an influx of such films in the United States would throw thousands of our own... out of work, because it would be absolutely impossible for the American producers to compete with the German producers". At home, the German film industry confronted an unstable economic situation and the devaluation of the currency made it difficult for the smaller production companies to function. Film industry financing was a fragile business and expensive productions occasionally led to bankruptcy. In 1925 UFA itself was forced to go into a disadvantageous partnership called Parufamet with the American studios Paramount and MGM, before being taken over by the nationalist industrialist and newspaper owner Alfred Hugenberg in 1927.

Nevertheless, the German film industry enjoyed an unprecedented development – during the 14 years which comprise the Weimar period, an average of 250 film were being produced each year, a total of 3,500 full-feature films. Apart from UFA, about 230 film companies were active in Berlin alone. This industry was attracting producers and directors from all over Europe. The fact that the films were silent and language was not a factor, enabled even foreign actors, like the Danish film star Asta Nielsen or the American Louise Brooks, to be hired even for leading roles. This period can also be noted for new technological developments in film making and experimentation in set design and lighting, led by UFA. Babelsberg Studio, which was incorporated into UFA, expanded massively and gave the German film industry a highly developed infrastructure. Babelsberg remained the centre of German filmmaking for many years, became the largest film studio in Europe and produced most of the films in this "golden era" of German cinema. In essence it was "the German equivalent to Hollywood".

Films about an exaggerated version of Japanese culture that included "geishas, samurai, and Shinto shrines" were popular in Germany during this era.

Due to the unstable economic condition and in an attempt to deal with modest production budgets, filmmakers were trying to reach the largest audience possible and in that, to maximize their revenues. This led to films being made in a vast array of genres and styles.

One of the main film genres associated with the Weimar Republic cinema is German Expressionism which was inspired by the expressionist movement in art. Expressionist movies relied heavily on symbolism and artistic ry rather than stark realism to tell their stories. Given the grim mood in post-World War I, it was not surprising that these films focused heavily on crime and horror. The film usually credited with sparking the popularity of expressionism is Robert Wiene's The Cabinet of Dr. Caligari (1920), produced by Erich Pommer. The film tells the story of a demented hypnotist who is using a sleepwalker to perform a series of murders. The film featured a dark and twisted visual style – the set was unrealistic with geometric images painted on the floor and shapes in light and shadow cast on walls, the acting was exaggerated and the costumes bizarre. These stylistic elements became trademarks of this cinematic movement. Other notable works of Expressionism are Friedrich Wilhelm Murnau's Nosferatu (1922), a classic period-piece horror film that remains the first feature-length film adaptation of Bram Stoker's Dracula, Carl Boese and Paul Wegener's The Golem: How He Came Into the World (1920), a Gothic retelling of the Jewish folktale, and Metropolis (1927), a legendary science-fiction epic directed by Fritz Lang. The Expressionist movement began to wane during the mid-1920s, but perhaps the fact that its main creators moved to Hollywood, California, allowed this style to remain influential in world cinema for years to come, particularly in American horror films and film noir and in the works of European directors such as Jean Cocteau and Ingmar Bergman.

Despite its significance, expressionist cinema was not the dominant genre of this era. Many other genres such as period dramas, melodramas, romantic comedies, and films of social and political nature, were much more prevalent and definitely more popular.

The "master" of period-dramas was undoubtedly Ernst Lubitsch. His most notable films of this genre were Madame Dubarry (1919) which portrayed King Louis XV of France's mistress, and Anna Boleyn (1920) on the tragic end of King Henry VIII's second wife. In these films, Lubitsch presented prominent historic personalities who are caught up by their weaknesses and petty urges and thus, ironically, become responsible for huge historical events. Despite modest budgets, his films included extravagant scenes which were meant to appeal to a wide audience and insure a wide international distribution.

As the genre of expressionism began to diminish, the genre of the New Objectivity (die neue Sachlichkeit) began to take its place. It was influenced by new issues which occupied the public in those years, as the rampant inflation caused deterioration in the economic status of the middle class. These films, often called "street films" or "asphalt films", tried to reflect reality in all its complexity and ugliness. They focused on objects surrounding the characters and cynically symbolized the despair felt by the German people, whose lives were shattered after the war. The most prominent film maker who is associated with this genre is Georg Wilhelm Pabst in his films such as: Joyless Street (1925), Pandora's Box (1929), and The Loves of Jeanne Ney (1927). Pabst is also credited with innovations in film editing, such as reversing the angle of the camera or cutting between two camera angles, which enhanced film continuity and later became standards of the industry.