Among the most discussed initiatives at this year’s San Sebastián Festival is the aggressive expansion strategy led by the Spanish Society for Technological Transformation (SETT), the investment arm behind Spain’s Audiovisual Hub.
Over the past twelve months, SETT has deployed €215.6 million ($252.3 million) across Spain’s film, television, video game, and new technology sectors. According to María González Veracruz, Spain’s secretary of state for digitalization and artificial intelligence, this public funding has triggered a matching €230 million ($269.1 million) in private-sector investment, bringing the total capital push to approximately $521 million.
This figure represents roughly four times the average budget of Spain’s core subsidy fund managed by the ICAA Film Board. However, SETT’s approach marks a significant departure from traditional models. Since the 1940s, Spanish governments have relied on grants, loans, and tax incentives for individual productions. SETT, part of the Ministry for Digital Transformation, instead focuses on equity investments in companies with portfolios of productions, aiming to build entities capable of competing internationally.
“We are moving from an era of encouraging an ecosystem to consolidating a truly international audiovisual industry,” González Veracruz stated.
Building Global Competitors
Eleven of SETT’s fifteen investments have been made public, targeting key players across the value chain. The portfolio includes animation leaders Anima Kitchent and Amuse Animation, new production houses such as Good Films Studios Spain, Ítaca Films Madrid, and Moonlighting Studios Spain, post-production facilities like Lazona Audiovisual Hub and The Refinery, and full-service operation Impulse Studio.
Risk capital partners supporting these efforts include Aurora Media Inversiones, led by the Secuoya Content Group, Culture CAP7, and genre specialist Moby Dick Film Capital.
Javier Ponce, SETT’s director general, described the fund as a “public catalyst for growth, employment, innovation and talent,” leveraging the weight of the Spanish government and European Union backing. The funding is sourced from the EU’s Next Generation recovery program.
María Coronado, SETT’s audiovisual director, outlined the strategy’s three pillars: an industry-wide approach rather than project-specific, investment in company equity or regulated vehicles, and the promotion of long-term public-private partnerships. She emphasized that companies must present a “worthwhile business opportunity.”
Strategic Investments in a Contracting Market
With global TV markets contracted to approximately 75% of their peak according to Ampere Analysis, SETT is targeting specific high-value opportunities.
For instance, SETT acquired a 46% stake in Good Films Studios Spain for €19.8 million ($22.6 million). Located at the Ciudad de la Luz studio complex, the company aims to produce English-language films with budgets between €15 million and €25 million featuring internationally recognized stars. Miriam Segal, who produced “Good” starring Viggo Mortensen, noted that independent filmmaking at this level is increasingly difficult. “To have a government body like SETT… is like I died and went to heaven,” she said.
Similarly, Madrid-based Impulse Studio, co-owned by SETT, offers end-to-end services from development to distribution. CEO Andrés Sánchez Pajares highlighted that government backing provides “hard equity” and security that allows them to engage with investors previously inaccessible to Spanish producers.
Focus on IP and Animation
SETT is also scaling up animation projects, particularly for preschool audiences. A €9.2 million ($10.7 million) investment was made in partnership with Planeta Junior and Amuse Animation to co-acquire distribution rights for the hit series “Milo,” which has been sold to 186 territories. Coronado noted the strategic value lies in technology development, including software and mobile applications tied to the IP.
Other notable investments include a €24.9 million equity stake in Canary Islands-based Anima Kitchent, home to “Cleo & Cuquín,” and a €6.4 million ($7.3 million) investment for a 48% stake in Amuse Labs. Additionally, SETT contributed €20 million toward the launch of Ítaca Films Madrid alongside Mexican investors, and took a 46% stake in the Lazona Audiovisual Hub.
Maria Rua Aguete of consultancy Omdia observed that while Spain has long been an attractive production hub due to talent and infrastructure, the next logical step is transitioning from a production destination to exporting globally competitive Spanish companies that own intellectual property.
Although EU Next Generation funds expired on August 30, SETT plans to continue its operations under a new fund, España Crece. Ponce confirmed that discussions with the Spanish state bank ICO are underway to ensure continued co-investment in strategic sectors.
González Veracruz summarized the phase two goal: “Spain continues to be not only a great place to film, but also a great place to create, produce, finance, and export content, technology, and intellectual property to the world.”
Good for big studios like Good Films, but what about smaller Spanish productions? Will they get left behind?
$521 million is impressive, but let’s see if this actually creates jobs beyond the boardroom. Employment numbers matter.
Equity investments instead of simple grants? That’s a smart pivot. But can they really compete with established US studios?
This is huge for Spain! Finally moving from just a filming location to creating global content powerhouses.