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 EUR