East German cinema initially profited from the fact that much of the country's film infrastructure, notably the former UFA studios, lay in the Soviet occupation zone which enabled film production to get off the ground more quickly than in the Western sectors. The authorities in the Soviet Zone were keen to re-establish the film industry in their sector and an order was issued to re-open cinemas in Berlin in May 1945 within three weeks of German capitulation. The film production company DEFA was founded on 17 May 1946, and took control of the film production facilities in the Soviet Zone which had been confiscated by order of the Soviet Military Administration in Germany in October 1945. A joint-stock company on paper, the majority interest in DEFA was actually held by the Socialist Unity Party of Germany (SED) which became the ruling party of the German Democratic Republic (GDR) after 1949, formally placing DEFA as the state-owned monopoly for film production in East Germany. A sister "company", Progress Film, had also been established as a similar monopoly for domestic film distribution, its principal "competition" being Sovexportfilm, which handled distribution of Soviet films.
East German cinema initially profited from the fact that much of the country's film infrastructure, notably the former UFA studios lay in the Soviet occupation zone which enabled film production to get off the ground more quickly than in the Western sectors. The authorities in the Soviet Zone were keen to re-establish the film industry in their sector and an order was issued to re-open cinemas in Berlin in May 1945 within three weeks of German capitulation. The film production company DEFA was founded on 17 May 1946, and took control of the film production facilities in the Soviet Zone which had been confiscated by order of the Soviet Military Administration in Germany in October 1945. A joint-stock company on paper, the majority interest in DEFA was actually held by the Socialist Unity Party of Germany (SED) which became the ruling party of the German Democratic Republic (GDR) after 1949, formally placing DEFA as the state-owned monopoly for film production in East Germany A sister "company", Progress Film, had also been established as a similar monopoly for domestic film distribution, its principal "competition" being Sovexportfilm, which handled distribution of Soviet films.