As someone who has spent a significant part of my career in the film industry, I must say that this report is nothing short of astonishing. The economic impact of international productions in Spain is not just a boom for the audiovisual sector, but a game-changer for the entire nation’s economy.
As a dedicated admirer, I’m excited to share some intriguing insights about Netflix’s viewership trends for the first half of 2024. It appears that non-English stories are garnering immense popularity, constituting nearly a third of all viewing! Titles originating from Spain have been particularly captivating. According to Netflix, “Society of the Snow” (with 104 million views), “Berlin” (49 million views), “The Asunta Case” (31 million views), and “Raising Voices” (25 million views) have been making a significant impact.
It’s no surprise that in 2023, with an investment of €1 billion, Spain ranked second in Europe, just behind the U.K., when it comes to global investments in original content for streaming services, as reported by the European Audiovisual Observatory this month.
A newly released report, unveiled on Sunday at the San Sebastian International Film Festival, has introduced an additional complication in the calculations regarding the substantial amounts generated by Spain’s film and television sectors.
The initial research titled “Economic Impact of International Productions in Spain,” was jointly produced by the Spain Film Commission, Profilm (Spain’s line producers association), and Olsberg·SPI. This report provides insights into the overall economic ripple effect that foreign film productions have on Spain.
The analysis is conducted using data from 165 international productions that received tax incentives from Spain, spanning the years 2019 to 2022.
Over the specified timeframe, these productions invested at least 1.32 billion euros ($1.47 billion USD) into the Spanish audiovisual sector. This investment is believed to have stimulated a minimum estimated contribution of 1.8 billion euros ($2.4 billion USD) to the country’s Gross Value Added (GVA), which is a measure of economic output.
For every Euro invested in the sector through international production tax incentives, there was a subsequent return of nine Euros in terms of added Value Added (GVA).
The reasons for this situation are rooted in the fact that the financial effects of these productions aren’t confined solely to spending within the audio-visual sector, but rather ripple far and wide across the entire national economy. The study found that a significant proportion of production costs are distributed among industries beyond the audio-visual sector.
Over the course of 2019-2022, these productions maintained a yearly average of around 7,080 full-time positions within the Spanish economy. Out of these jobs, roughly 1,300 were directly generated by these productions themselves. The report further stated that an additional 5,780 jobs were sustained indirectly, either through the supply chain or the broader economy, as a result of wages spent on employees.
Approximately €542.95 million ($600 million), or about 55% of the total value added by these productions, was earned by employees involved in incentivized international projects. A large portion of this sum, around 73%, was attributed to indirect and induced effects on the economy.
Approximately three-quarters of the expenses incurred during the production of a large-budget movie were found to be allocated towards areas like construction, hospitality, transportation, and location costs. This suggests that audio-visual production has a more extensive influence on the economy than one might initially think, as it tends to support several different industries.
The surge in Spain’s audio-visual production isn’t solely due to conventional factors or emerging worldwide tendencies like the rise of content creation for streaming services, but also because of the implementation of political policies and governmental assistance meant to foster the industry, according to the summary.
The funding for the report was met with joy during a presentation on Sunday at the San Sebastian Film Festival.
María González Veracruz, the Secretary of State for Telecommunications and Digital Infrastructures, stated that this isn’t just the achievement of a specific government sector or department, but rather the overall success of Spanish society as a whole. She emphasized that we are making progress towards transforming the audiovisual sector into a genuine engine for industrial expansion and employment generation.
More to come.
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2024-09-22 21:17