Proceedings of the International scientific and practical conference ―Science, Technology and Art in Global Context‖ (December 12-14, 2025) / Publisher website: www.naukainfo.com. – Cambridge, United Kingdom, 2025. – 190 p.

51 technologies have become a defining factor in reshaping production processes, distribution models and consumption patterns in the European film sector, thereby directly influencing its economic sustainability. The digital transformation of the film industry has significantly altered traditional value chains. Advances in digital cinematography, post-production technologies and virtual production tools have reduced certain production costs while simultaneously raising new financial and organizational challenges related to technological investment and skills development. At the same time, digital platforms and streaming services have transformed film distribution, enabling transnational circulation of audiovisual content and expanding access to global audiences. These developments have intensified competition within the European film market and challenged established theatrical exhibition models, which historically played a central role in sustaining national film industries [1]. From an economic perspective, digitalization has introduced both opportunities and risks for the sustainability of European cinema. On the one hand, digital technologies facilitate market entry for independent producers, enhance cross-border co-productions and enable innovative financing mechanisms, including platform- based funding and hybrid distribution strategies. On the other hand, the growing dominance of global streaming platforms has raised concerns regarding market concentration, unequal revenue distribution and the marginalization of local cultural production. The asymmetry between global technology-driven corporations and national film industries poses significant challenges for maintaining cultural diversity and economic viability within the European audiovisual sector [2]. The European Union has responded to these challenges through a combination of regulatory and support mechanisms aimed at balancing technological innovation with cultural and economic objectives. EU audiovisual policy, including the Audiovisual Media Services Directive and the Creative Europe programme, seeks to promote fair competition, protect cultural diversity and ensure sustainable financing for European film production in the digital age. These regulatory frameworks reflect