The book by Michael Ende is one of the best books I have ever read and I read a lot of fantasy novels. He actually tried to stop the movie from happening but failed. The result is a washed down version of the first half of the book. Nevertheless, I used to enjoy the movie as well and it has become one of the best German productions of its time.
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Thank you for your comment. It is obvious that a film can never do justice to a good book, and it is always a good idea to read a book after the film to get a feel for the atmosphere of the story. I just forgot to write the author of the book, although I tried to focus on the film here. It is a German film, although everyone speaks English when watching it, and the location seems to be in New York. I know there are other films coming out, but I think I'll stick with this one because I think it's a very well made film.