Spain’s cinematic surge: A deep dive into the economic impact of international productions
The rise of non-English stories on Netflix
Released on September 21, Netflix’s latest data for the first half of 2024 revealed a significant trend: non-English stories are capturing a substantial portion of the platform’s viewership. Titles from Spain, in particular, have been leading the charge. Among the most popular are Society of the Snow with 104 million views, Berlin with 49 million, The Asunta Case with 31 million, and Raising Voices with 25 million.
Spain’s investment in original content
It’s no surprise that Spain ranked second in Europe, just behind the U.K., in global streamer investment on original content in 2023. According to a recent report by the European Audiovisual Observatory, Spain’s investment reached a staggering €1 billion. This investment is not just a testament to the country’s rich storytelling tradition but also to its strategic positioning in the global entertainment industry.
The economic impact of international productions
A new report presented at the San Sebastián Film Festival sheds light on the vast economic impact of Spain’s film and TV industries. Conducted by the Spain Film Commission in collaboration with Profilm and Olsberg·SPI, the report titled “The Economic Impact of International Productions in Spain” is the first comprehensive study of the economic ripple effects of foreign shoots in the country.
Key findings from the report
The report is based on data from 165 productions that benefited from Spain’s tax rebates for international productions between 2019 and 2022. These productions spent a minimum of €1.32 billion ($1.47 billion) in the Spanish audiovisual economy, generating an estimated €1.8 billion ($2.4 billion) in Gross Value Added (GVA) contributions to the national economy.
For every Euro invested in the sector through international production tax incentives, there was a return of nine Euros in additional GVA. This significant return is attributed to the widespread economic impact of these productions, which extends beyond the audiovisual industry to various other sectors.
Job creation and economic benefits
The productions created or sustained an average of 7,080 full-time equivalent (FTE) jobs each year across the Spanish economy during the period 2019-2022. Of these, approximately 1,300 jobs were directly generated by the productions, while the remaining 5,780 jobs were supported through the supply chain and wider economy.
Total accumulated remuneration for employees who worked on incentivized international productions amounted to €989.9 million ($1.1 billion), with 55% of the GVA going to indirect and induced impacts.
Broader economic impact
Breaking down the expenses of a high-budget film, the report estimated that 74% of below-the-line production spending went to other sectors such as construction, hospitality, transportation, and location fees. This indicates that audiovisual production has a much broader economic impact than might be expected, benefiting a variety of economic sectors.
Government support and political initiatives
Spain’s audiovisual production boom is not solely due to traditional characteristics or global trends like the increase in content production for streaming platforms. It is also driven by political initiatives and government support aimed at developing the sector. These efforts have positioned Spain as a key player in the global entertainment industry.
A celebration of success
The findings of the report were met with jubilation at the San Sebastián Film Festival. María González Veracruz, Secretary of State of Telecommunications and Digital Infrastructures, emphasized that this success is not just a triumph for the government or the sector but for the whole of Spanish society. “We are achieving that the audiovisual sector is becoming a true motor of industrial growth and job creation,” she stated.
Looking ahead
As Spain continues to attract international productions and invest in original content, the country’s film and TV industries are poised for even greater growth. The economic benefits, job creation, and cultural impact of these efforts are a testament to the power of storytelling and the importance of strategic investment in the arts.
For cinema and TV series enthusiasts, this is an exciting time to explore the rich tapestry of Spanish storytelling. Whether you’re captivated by the gripping narratives of Society of the Snow or the intriguing mysteries of The Asunta Case, there’s no shortage of compelling content to discover.
Stay tuned for more updates and insights into the world of cinema and TV series, as Spain continues to make its mark on the global stage.