The studios were constructed in 1939 by the film producer Gustav Althoff who controlled the independent company Aco-Film.
The original building was a former restaurant, but Althoff soon expanded the site by adding a larger sound stage.
[citation needed] The studios were located close to the film city of Babelsberg which was the centre of production during the Nazi era, used by large German companies such as UFA and Terra.
The studios were captured by the Red Army during the Battle of Berlin and were then used for dubbing Soviet films for release in Germany.
After the Second World War they were located in the Soviet Sector and were used by Communist-backed DEFA film concern which would become the state-owned monopoly of East Germany.