Economic contributions of film and television significantly boost Madrid's GDP and economic expansion, solidifying them as key strategic aims for the region.
Madrid Audiovisual Cluster Bolsters Audiovisual Sector in Spain's Capital
The Madrid Audiovisual Cluster, a recently established initiative, is working to strengthen and expand the audiovisual sector in the Madrid region of Spain. Launched in March 2023, the Cluster aims to capitalise on the region's existing strengths and opportunities in film, television, and digital media.
The Cluster's role in the growth of the audiovisual sector includes fostering cooperation between companies and organisations in the field, supporting the development of post-production companies, and leveraging Madrid's existing tax break incentive of 31.25%. This incentive has already attracted multiple foreign film shoots to the region.
The audiovisual sector in Madrid currently employs around 20,000 people directly and accounts for 1% of Madrid's regional GDP, generating approximately 3.3 billion euros annually. With projected sector growth of about 25% in the coming years, driven by technological, demographic, and geopolitical changes, the Cluster acts as a strategic platform to consolidate and expand Madrid's audiovisual industry.
Improving access to resources is one of the strategic pillars of the Madrid Audiovisual Cluster, according to Managing Director Teresa Azcona. The Cluster represents a commitment to all members of Madrid's audiovisual ecosystem, including over 3,500 active film and TV audiovisual companies in the region, which has seen a robust 60% growth in the last decade.
Netflix has its first European production hub at the Secuoya Studios in Tres Cantos, just north of Madrid, and companies such as Skydance Animation and Electronic Arts have established a presence in the region. Skydance settled in Madrid in 2020, while Electronic Arts employs a 600-strong workforce drawn from 40 nationalities.
The Cluster has also established a Madrid Audiovisual Observatory to analyse the state of the region's industry and inspire public-sector policies. Raúl Berdonés, Cluster president and Secuoya Group founder, believes in collaboration as a key to strengthening the sector's position globally. The Cluster emphasises the importance of retaining intellectual property rights to content.
The Madrid regional government has renewed a collaboration deal with the Madrid Audiovisual Cluster through 2026, with an investment of €240,000 euros ($281,763) aimed at boosting innovation, training, and the international promotion of the audiovisual sector in the Madrid region. The sector's total contribution to Madrid's economy amounts to €7.2 billion ($8.5 billion), according to a report, with the gross added value of the sector exceeding €2.3 billion ($2.7 billion).
In conclusion, the Madrid Audiovisual Cluster is a strategic priority for Madrid's regional government, making the region one of the biggest audiovisual hubs in Southern Europe. The Cluster's initiatives aim to attract more foreign productions, create jobs, and boost the local economy.
- To further boost the economy and create more opportunities, the Madrid Audiovisual Cluster is planning to extend its collaborations with businesses in the finance sector, particularly those interested in investing in the growing audiovisual sector.
- As the audiovisual sector in Madrid continues to expand, the Madrid Audiovisual Cluster envisions diversifying into interdisciplinary areas such as business and entertainment, aiming to create a more vibrant and dynamic industry in the region.
