By admin 
No Spanish industry initiative is likely to drive more conversation at this year’s San Sebastián Festival than the latest moves by the Spanish Society for Technological Transformation (SETT). Over the past 12 months, SETT, the state-backed venture capital fund and investment driver of the Spain Audiovisual Hub, has injected a significant €215.6 million (approximately $252.3 million) into Spain’s film, television, video game, and new technology sectors. This substantial financial commitment has, in turn, catalyzed matching private-sector investment, amounting to an additional €230 million (around $269.1 million), according to María González Veracruz, Spain’s secretary of state for digitalization and artificial intelligence. To put this figure into perspective, SETT’s investment is roughly four times the average annual budget allocated to Spain’s core subsidy fund at the ICAA Film Board, underscoring a dramatic shift in the nation’s approach to supporting its creative industries.
SETT, operating under the umbrella of Spain’s Ministry for Digital Transformation, represents a fundamental reorientation of government support, moving beyond traditional subsidy models that have been in place since the 1940s. Historically, Spanish governments have relied on a system of grant subsidies and loans for individual film projects, later augmented by tax incentives for film shoots in Spain, introduced around 2015. SETT’s innovative strategy diverges significantly, investing in companies for periods of up to 10 years and focusing on those with a robust portfolio of productions. Crucially, it mandates co-investment from private sector partners and actively seeks to equip these companies with the resources and strategic advantage needed to thrive in the highly competitive international market. Furthermore, SETT extends its support to private-sector investment vehicles, further leveraging private capital and expertise.
“We are moving from an era of encouraging an ecosystem to consolidating a truly international audiovisual industry,” stated González Veracruz, highlighting the ambitious scope of SETT’s mission. This transition signifies a proactive effort to elevate Spain from a favored production location to a global powerhouse in content creation and intellectual property ownership.
To date, eleven of SETT’s fifteen investments have been publicly disclosed, revealing a diverse and strategically chosen portfolio of beneficiaries. The animation sector, recognized for its global reach and potential for IP development, has seen significant investment in companies such as Anima Kitchent, Amuse Animation, and Planeta Junior. New Spain-based production companies like Good Films Studios Spain, Ébano Films Madrid, and Moonlighting Studios Spain are also receiving crucial backing. The post-production landscape is being strengthened through investments in facilities like Lazona Audiovisual Hub and The Refinery, while Impulse Studio, a company with a full value chain encompassing production and distribution, also benefits from SETT’s support.
The breadth of SETT’s strategic vision is further exemplified by its partnerships with established risk capital funds. These include Aurora Media Inversiones, led by the Secuoya Content Group, which focuses on content creation and distribution; Culture CAP7, a fund specifically targeting small-to-medium-sized enterprises within the sector; and Moby Dick Film Capital, specializing in genre films. These collaborations ensure that SETT’s capital is channeled through experienced financial intermediaries with a deep understanding of the industry.
Javier Ponce, SETT’s director general, emphasized the organization’s role as a “public catalyst for growth, employment, innovation, and talent, which are all core elements of the audiovisual sector.” He underscored that SETT brings to the table the substantial weight and influence of the Spanish government and the backing of the European Union, providing a crucial layer of credibility and stability for its investments. The Spain Audiovisual Hub, of which SETT is a key component, is an integral part of Spain’s post-COVID Recovery Plan, with SETT’s funding primarily derived from the European Union’s Next Generation funds, as noted by Ponce.
María Coronado, SETT’s audiovisual director, outlined the three core pillars upon which the organization’s investment model is built. “First, it adopts an industry-wide approach, rather than a project-based one, addressing the entire audiovisual business ecosystem,” she explained. This holistic perspective ensures that investments contribute to the sustainable growth of the sector as a whole, rather than supporting isolated projects. “Second, its investment facilities are directed at the equity capital of companies or regulated investment vehicles,” Coronado continued, indicating a focus on building stable, financially sound entities. “Third, it promotes public-private partnership instruments in the medium to long term,” a strategy designed to foster lasting collaborations and shared success. Companies seeking SETT’s investment must, therefore, demonstrate a “worthwhile business opportunity,” aligning with the organization’s goal of fostering commercially viable and internationally competitive enterprises.
The global market for audiovisual content, while robust, has seen contractions, with peak television markets now estimated to be around 75% of their former size, according to data from Ampere Analysis. In this evolving landscape, SETT’s strategic approach is crucial for identifying and nurturing new opportunities. A prime example of this is SETT’s €19.8 million (approximately $22.6 million) investment for a 46% stake in Good Films Studios Spain. This new entity, established at Spain’s Ciudad de la Luz, one of the country’s largest studio complexes, aims to produce competitive English-language films with budgets ranging from €15 million to €25 million (approximately $17.5 million to $29.3 million). The ambition is to attract stars with proven international theatrical market value. Miriam Segal, head of Good Films Studios Spain and a producer with credits including “Good” (starring Viggo Mortensen) and “The Infiltrator” (starring Bryan Cranston), expressed immense enthusiasm for SETT’s support. She acknowledged the increasing difficulty of attracting top-tier talent for independent films and described SETT’s involvement, alongside potential new producer-driven tax incentives, as a transformative development. “In a world that’s receding, to have a country with the vision to support filmmakers, independence, training, and the creation of an industry is very exciting,” Segal remarked.
Impulse Studio, co-owned by SETT and founded in Madrid by Roberto Butragueño and Andrés Sánchez Pajares, exemplifies the integrated approach SETT aims to foster. The company offers a comprehensive suite of services, spanning from upstream development and financing to production, post-production, international sales, and distribution. “When we talk with potential partners on projects or potential investors, we have the stamp of security of government backing,” stated Sánchez Pajares. With SETT’s backing, Impulse Studio can provide “hard equity” and retain intellectual property rights, allowing them to “offer all services at any phase of a project,” according to Sánchez, the CEO of Impulse Studio. He believes this capability will enable them to engage with stakeholders they were previously unable to access, opening new avenues for collaboration and growth.
Further expansion opportunities are being pursued in the animation sector, specifically targeting the preschool audience. In a strategic move, SETT invested €9.2 million (approximately $10.7 million) and partnered with Planeta Junior and Amuse Animation to co-acquire select distribution rights for the hit preschool animated series “Milo.” This series has achieved remarkable global penetration, sold to 186 territories across multiple formats, highlighting its potential for extensive IP exploitation. Coronado sees “Milo” as a “strategic opportunity in the field of technology development, particularly in software, video games, and mobile applications,” underscoring the convergence of traditional content with digital platforms.
Maria Rua Aguete, a principal analyst at London-based consultancy Omdia, commented on Spain’s evolving position in the global market: “Spain has already established itself as one of Europe’s most attractive production hubs, thanks to its combination of creative talent, production incentives, and infrastructure. The next logical step is for Spain to transition from being a production destination to building globally competitive Spanish companies that own and export intellectual property.” SETT’s strategy directly addresses this imperative.
While the EU Next Generation funds, which have been a significant source of SETT’s capital, ran out on August 30th, SETT’s commitment to the audiovisual sector remains unwavering. “The audiovisual sector will remain one of SETT’s strategic areas of activity and will continue under new fund, España Crece,” stated Ponce. Discussions are already underway with the Spanish state bank, ICO, to define the procedures and framework for continued collaboration, ensuring the ongoing co-investment in strategic technologies and sectors.
A Drill Down on Further SETT Investments
The strategic vision for the Spain Audiovisual Hub’s second phase is clearly articulated by González Veracruz: “The goal of the Hub’s second phase is clear: that 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.” She further emphasized the broad scope of their investments, stating, “It’s a portfolio that reflects an industrial, technological, domestic, and international view of Spanish audiovisual production.”
A closer examination of announced SETT investments reveals the concrete steps being taken to achieve these ambitious goals:
-
Moonlighting Studios Spain and The Refinery: South Africa’s Known Associates Group and SETT have jointly invested €25 million (approximately $29 million) to launch Moonlighting Studios Spain, a new production company based in Madrid, and The Refinery, a post-production facility with operations in the Basque Country and the Canary Islands. This initiative aims to bolster Spain’s capacity in both physical production and high-end post-production services.
-
Anima Kitchent: In collaboration with DNEG, the sole VFX partner for Christopher Nolan’s “The Odyssey,” SETT has taken a €24.9 million (approximately $29.1 million) equity stake in Anima Kitchent, based in the Canary Islands. Anima Kitchent is a leader in preschool animation, known for its successful series “Cleo & Cuquín” and its mastery of leveraging YouTube, where it boasts over 67 million subscribers, to launch and consolidate intellectual properties. Pablo Hernández, executive president of the Canary Islands ZEC tax benefit zone, highlighted the strategic advantage: “The real edge is the combination: strong IP and production values paired with data analysis that tracks audience trends in real time. Producing quickly and at high quality is precisely what makes that IPs travel into new markets.”
-
Ébano Films Madrid: SETT has committed €20 million (approximately $23.4 million) of a total €45 million (approximately $52.65 million) investment to found Ébano Films Madrid, an international content studio. The remaining capital comes from Mexico’s Ébano Films and investor Omega Capital. Santiago García of Ébano Films articulated the significance of SETT’s involvement: “For Ébano Films, SETT represents much more than financing. It’s an instrument which institutionalizes the industry, strengthens producers and shows that creativity, when it counts on structure and solid bases, can grow and develop better.”
-
Amuse Labs: This new animation company, based in the Canary Islands and focused on the creation, ownership, and global distribution of kids & family IPs, has received a €6.4 million (approximately $7.3 million) investment from SETT in exchange for a 48% equity position. Amuse Studios will become Amuse Labs’ second-largest shareholder, further integrating and strengthening the company’s operational capacity.
-
Lazona Audiovisual Hub: SETT has acquired a 46% equity participation for €1.1 million (approximately $1.3 million) in Lazona Audiovisual Hub. This Madrid-based entity, also co-owned by Lazona (36%) and El Alamedia Estudios (13%), is positioned as a comprehensive creation and post-production factory designed to address the substantial demand for post-production services within the Spanish capital.
These investments collectively paint a picture of a Spanish government and its affiliated entities strategically deploying capital to foster a more robust, innovative, and internationally competitive audiovisual industry, moving decisively beyond traditional support mechanisms to embrace a future driven by equity, long-term partnerships, and global IP ownership.
