At this year’s San Sebastián Festival, the Spanish Society for Technological Transformation (SETT) is capturing significant attention with its bold initiatives aimed at reshaping the country’s audiovisual landscape. Backed by state funds, SETT is at the forefront of a transformative investment strategy to boost Spain‘s film, television, video game, and technology sectors.
SETT’s Substantial Investment in the Audiovisual Sector
In the past year, SETT has invested €215.6 million ($252.3 million) as part of the Spain Audiovisual Hub’s effort to forge a robust industry ecosystem, drawing an additional €230 million ($269.1 million) in private-sector investments, according to María González Veracruz, Spain’s secretary of state for digitalization and artificial intelligence. This financial commitment is approximately four times more than the average budget allocated to Spain’s core subsidy fund under the ICAA Film Board.
A Shift in Funding Strategy
Traditionally, Spanish governments have relied on subsidy grants and loans for individual film projects, a practice dating back to the 1940s. However, SETT is shifting this paradigm by offering long-term investments of up to ten years in companies with a diverse portfolio of productions. This model not only necessitates co-investment from private partners but also aims to enhance their competitive edge in the international market.
“We are moving from an era of encouraging an ecosystem to consolidating a truly international audiovisual industry,” says González Veracruz.
Diverse Portfolio of Investments
Out of the total investments made by SETT, 11 of the 15 are publicly known and cover a broad spectrum of the industry. Recipients include animation leaders like Anima Kitchent, new production companies such as Good Films Studios Spain, and comprehensive service providers like Impulse Studio, highlighting the diverse ecosystem that SETT aims to nurture.
Additional investment partners include Aurora Media Inversiones, Culture CAP7 targeting SMEs, and genre-focused Moby Dick Film Capital. SETT’s director general, Javier Ponce, emphasizes its role as a “public catalyst for growth, employment, innovation, and talent,” empowered by the backing of the Spanish government and the European Union.
Funding Through Strategic Partnerships
SETT’s funding strategy is central to Spain’s post-COVID Recovery Plan and is financed through the European Union’s Next Generation funds. However, with these funds expiring, Ponce assures continued support for the audiovisual sector through the new España Crece fund, emphasizing the government’s commitment to co-investment in strategic sectors.
Enhancing International Competitiveness
SETT’s operational model is anchored on three pillars: an industrywide approach, focused investment in equity capital of companies, and the enhancement of public-private partnerships for long-term sustainability. González Veracruz asserts that the goal is for Spain to be a leader not just in film production but in the creation, financing, and distribution of content and technology on a global scale.
Highlighting Specific SETT Investments
Several noteworthy investments have already been made, including a joint €25 million ($29 million) investment to launch Moonlighting Studios Spain and The Refinery, as well as €24.9 million ($29.1 million) equity in Anima Kitchen, known for its successful preschool animation series. SETT also contributed €20 million ($23.4 million) to Ítaca Films Madrid to foster international content creation.
Other investments include €6.4 million ($7.3 million) in Amuse Labs and a 46% equity stake in Lazona Audiovisual Hub, aimed at enhancing post-production services in Madrid. Each of these strategic decisions is aligned with SETT’s vision of strengthening Spain’s position in the global audiovisual market.
The Future of Spanish Audiovisual Industry
“Spain has already established itself as one of Europe’s most attractive production hubs,” observes Maria Rua Aguete of consultancy Omdia. Nevertheless, as global markets contract, the need for robust, interconnected companies that can own and export intellectual property becomes increasingly crucial. The challenge of attracting star talent remains, but the support from initiatives like SETT is seen as transformative by industry leaders like Miriam Segal, head of Good Films Studios Spain.
As Spain seeks to build a competitive and vibrant audiovisual sector, the transformative steps taken by SETT signal an exciting future filled with potential for growth and innovation in content creation, production, and global distribution.
