U.S. HISPANIC
The audiovisual industry in Mexico is worth more than US$3,534 million according to Netflix and the IDB
Maribel Ramos-Weiner| 9 de junio de 2023
Panel Netflix FICG
The Guadalajara International Film Festival was the ideal setting to release the report on the economic impact of the audiovisual industry in Mexico, presented by Netflix in collaboration with the Inter-American Development Bank (IDB).
This study highlights that this industry generated total revenues of US$3,534 million in 2021, of which film production represented US$8,462 million, and film production is expected to increase between 6 and 7% year-on-year until 2025.
“There are few spaces to present data on the sector, it is one of the great gaps in our industry, understanding its size, behavior, and potential, and by doing so we can have an idea of where we are and what we can do, and this is a big question in our industry,” commented Pierre Emile Vandoorne, director of Public Policy for Netflix in Latin America.
According to the report for every US$11.5 million invested to create a film, an additional US$7.2 million is generated indirectly in the supply chain. “And every ten pesos Mexicans invested in industry generate an additional six in the economy, which represents a multiplier effect of 1.6. It is a fairly high and interesting figure, which shows how powerful it is compared to others that are usually prioritized by States and governments,” Vandoorne pointed out.
This investment generates hundreds of direct and indirect jobs for producers, technicians, photographers, editors, costume makers, and entertainers, among others, and the multiplier effect not only covers activities around the audiovisual industry, but also the construction of scenery, development of special effects, animation or musicalization, and has an impact on other industries such as transportation, raw materials, tourism, advertising, food and beverages, and legal.
CHALLENGES AND OPPORTUNITIES
For Alejandra Luzardo, the leader in Innovation and Creativity at the IDB, the production of the first series made in Mexico for a platform was an important step to visualize the future “where the audiovisual will play a much more important role as a connector with other industries, because today we travel through screens, and the question is how to make the audiovisual take advantage of and share information with other sectors such as tourism, which is highly relevant in this country. The future lies in working as a team to turn Latin America into a global audiovisual hub, because we have the greatest opportunity, like never before, and here we must ask ourselves whether we jump on the train or simply not invest in our talents.”
Netflix produced Club de Cuervos, its first original series in Mexico, in 2015, when it began its investment in the production of series and movies.
More recently, in the production of Pinocchio, by Guillermo del Toro, El taller de Chucho participated, and all the suppliers of machinery and materials for the construction of the sets and the animated characters in stop motion came from this workshop, while the hardware, lumber, and paint stores that provided inputs are based in Jalisco.
Angélica Lares, director of El taller de Chucho, and María Navarro, general director of IMCINE, who participated in the presentation, spoke about the importance of having stats and investment data to measure opportunities and steps to follow.
“It is necessary to have this data because private companies must know where we stand, how much we are generating, and then seek funding and carry out the planned projects. Including finding out what is the difference between making a production on a daily basis here in Mexico or in other countries.” She highlighted that in El taller de Chucho, “our first production (Pinocchio) we had the opportunity to promote the audiovisual from animation, and through this content we were able to promote the interest of public and private management. That is how this company was born two years ago and this data is of great help to create tabulators of what we have to invest and pay.”
To conclude, Lares said that Mexico is experiencing an interesting moment in different areas of the industry, and in Guadalajara particularly there is a boom in new talents and voices that have interesting things to say. “We are designing and promoting these spaces. You need to pull from many sides to strengthen the industry.”
