The Changing Landscape of Commercial Film Production – Interview with Tamás Hutlassa: Part 1

In the ever-evolving world of advertising, the demand for video content is higher than ever—yet production budgets are shrinking. How has this shift impacted commercial filmmaking? Tamás Hutlassa, head of Café Communications' film division, shares his insights on the growing challenges, changing client expectations, and the influence of digital platforms on video production. This is the first part of the interview, the second focuses more on the use of AI in commercial film production.

we_can: You have been leading the film division of Café Communications for 20 years. How has the role of in-house video production changed during this time within the agency?

Tamás Hutlassa: This change didn’t happen over the past 20 years, but rather in a shorter time frame in recent years. Client demands have grown while budgets allocated for production have decreased.

One phenomenon influencing this process is that smart devices can now record both audio and video. As a result, producing content no longer requires such a huge equipment as before. This has led to significant competition for consumers, as videos can now be created under much simpler conditions and with much simpler tools. However, this does not mean that this approach can fully replace classic commercial film production. Strong brands still create major productions with large budgets, sometimes featuring celebrities, for image-based communication. A video recorded on a phone cannot replace that.

At the same time, as opposed to the growing demand for content, brand budgets have significantly decreased. A key factor in pricing—at least in Hungary, where this is a particularly strong influence—is that due to inflation and other reasons, the cost of film production has skyrocketed. Wages and equipment rentals are significantly more expensive than they were even a few years ago, or even before COVID. Besides inflation, changes in tax regulations have also played a role in this increase. For example, in Hungary, the elimination of the KATA[1] tax system led to at least a 20-30% rise in wages for those working in film production.

Tamás Hutlassa

Creative and media experts have also emphasized that client expectations have changed dramatically with the rise of digital channels—budgets have shrunk, but demands have grown. So, has the same thing happened in film production, with clients expecting more for less?

Yes. Moreover, clients have another peculiar notion: if they are not requesting content for television use, they assume that since the cost of those platforms is low or free, the content produced for it should also be cheaper. However, the production process itself is no different—it requires the same time and technology as content made for television. The belief that digital content, such as social media videos, is inherently cheaper is a misconception. It can be cheaper, but only if it is produced with a completely different concept, different tools, and different quality expectations. That’s when a lower budget is possible.

Do clients understand this, or does it lead to more conflict?

More conflict.

Do you think this will get worse over time?

I don’t know if it will get worse, but this is the current reality. Every project requires its own separate negotiation and justification. From the clients’ perspective, it is somewhat understandable. In the past, the cost of production and broadcasting had a specific ratio—if we could air something for a certain price, then it made sense to produce it at a corresponding cost. Now, however, the cost of airing has dropped significantly, making any production cost seem disproportionately high. This shift is harder for clients to accept.

Short-format videos have dominated various platforms in recent years. How has this influenced the type of commercials being produced now?

These things influence each other, but it’s highly dependent on the brand and its target audience. More conservative brands that rely on traditional channels like television or cinema don’t necessarily move toward the latest trends.

Furthermore, with so many different content consumption options available, viewing habits have changed. Many target audiences are no longer reachable on the same platforms as before. Television today is relevant to a completely different demographic than it was a few years ago. New social media platforms are constantly emerging, shaping a new style and tone that brands must adapt to. This affects creative concepts, storytelling approaches, and ultimately production. Content for TikTok or Instagram requires a different strategy than a traditional TV commercial.

How has this impacted traditional TV commercials? Has their dynamic changed, or do they require a different approach now that short-format videos are so dominant?

I don’t see a fundamentally different approach compared to the past. TV commercials (TVCs) have always had a strict 20-30 second time limit, which strongly dictates the storytelling structure. In contrast, digital platforms have no time constraints theoretically—the key factor is how long viewers are willing to engage with content on a given platform. This is often longer than 30 seconds, allowing different storytelling techniques.

What has changed is that there are now many new technical tools available—new camera movement equipment, new digital effects—all of which leave a mark on production. However, the usage of these tools is again a matter of budget. If a commercial involves impressive visuals and technological innovations, it’s likely backed by a major (often international) brand with a large budget. On the other hand, when something needs to be filmed within 1-2 days, it simply won’t look the same as a production that takes 3-4 days with a massive budget. This also applies to the shooting period and post-production, requiring a different mindset.

Have the skills, expertise, and perspectives required for commercial film production changed compared to 10 or 20 years ago?

They have had to change, particularly because new platforms demand a new tone, and this evolving expectation primarily affects creatives. They need to come up with ideas and stories that work well on these platforms. The next step is execution—how directors and cinematographers bring these concepts to life. This, in turn, is influenced by the fact that they, too, are exposed to these platforms, which shape their perspectives.