Creative Industries in Mexico

Mexican creativity is internationally acknowledged. Aware of the prospects and strategic role of the creative industries in terms of country image and economic contributions, Mexico is positive about becoming an industry's world power.

According to PwC, on 2017 the country ranked 14 worldwide at the entertainment and media industry, in terms of revenues.

Moreover, the National Institute of Statistics and Geography (INEGI) reported in its latest figures that the culture GDP in Mexico is 3.3% of the National total, being audiovisual media the main segment (37.7%).

The main destinations of Mexican exports of creative goods were the United States, Canada and Luxembourg, with 86.7%, 1.6% and 0.9% shares, respectively. In addition, Mexico was the fifth supplier of the United States, above of countries such as India, Canada and the United Kingdom. At the same time, Mexico was also the sixth global exporter of animation, video games, software and digital content.

Coming from a great tradition of cinematographic and TV production, Mexico is a main audiovisual actor. A great part of the creative production in the country comes from all the components of this segment, such as films, TV, animation, videogames, VFX, Virtual reality and augmented reality. Mexican audiovisual contents are watched by more than one billion people and have an increasing demand at the Hispanic market in the United States, an influential and growing population segment. This encourages an interest in the design and implementation of specific industry public policies and strategies to propel the country to become the node by excellence to produce audiovisual and interactive contents for Hispanic speakers.

Mexico is a great center for developing and producing cinematographic contents. According to the Mexican Institute of Cinematography (IMCINE), 176 films were produced (30% of them were co-productions with 27 countries) and there were 424 new releases. The country is among the top 20 producers and it is the fourth movie market in the world by the number of screens (6,633) and attendance (338 million people).In 2017, 103 International awards were granted to national films, among them The Venice International Film Festival's Silver Lion for best direction to Amat Escalante, for his work at The Untamed.

 

In 2017 Mexico was the main exporter of creative goods in Latin America, with exports of more than 5,200 million dollars.

During the 1950's, Mexico laid the foundations to become a main player in TV contents and formats for Spanish speakers. More than 100,000 TV hours are produced each year and the contents are exported to more than a 100 countries and translated to more than 30 languages.

The experience in film and TV production has naturally extended to advertising, animation, video game developing and digital contents production. The Mexican creativity and excellence at advertising production were internationally recognized on 2015 with the first Grand Prix award at Cannes Lions.

With the arrival of digital platforms and the intensive use of smart phones and social networks, audiovisual contents of all kinds and formats are highly demanded. In that sense, Mexico has a big opportunity to consolidate its regional leadership and to become an important and influential global actor. PwC reports that in 2017 Mexico globally ranked as 12th and 13th by the number of downloaded apps and internet video revenues, respectively.

In addition to the consolidated strength in film, TV and advertising production, the country is becoming a main developer of video games and digital contents. The Entertainment Software Association (ESA) estimates that Mexico has all the elements to be a world leader at videogames, especially those for mobile devices and on-line social games. The Mexican video game industry recorded a 72.0% growth between 2012 and 2017, according to PwC data; the country has the second highest number of video game developing companies in Latin America and is ranked among the top 20 countries with highest revenues.

KPMG considers Mexico as one of the most competitive destinations for developing digital content, which means an advantage to turn into an influential actor with technics and narratives for the virtual reality and augmented reality segments, in which the country successfully participates with apps entertainment, culture, education, industrial training and health.

Companies located in Mexico

The country has an ecosystem of big, medium and small business; there are more than 1,500 companies dedicated to production services, post-production, animation and digital services.

The animation business located in Mexico produce and export contents for clients such as Nickelodeon, Cartoon Network and Arikama. The VFX companies have specialized as suppliers of Hollywood studios for films such as Pirates of the Caribbean on Stranger Tides, Tron Legacy, After Earth, Gone Girl, Dead Pool, Her, among others, in compliance with the higher international standards of security and certifications.

Strengths of the Creative Industries in Mexico

Logistics and facilities. Mexico has high quality facilities for audiovisual production, such as Estudios Baja, the main aquatic forum worldwide, and Estudios Churubusco, national and internationally recognized.

Talent

  • Mexico is the ninth worldwide center of specialized IT talent and the largest talent pool of technological talent in Latin America.
  • Every year more than 17 thousand students graduate from programs related with the arts, such as animation, digital design, cinematography, digital communication, virtual media communication, image and sound design, interactive design, digital media engineering and interactive and animated engineering.
  • The cultural sector employs more than 1.3 million people according to INEGI.

Strategic location

  • Mexico is the ideal platform for producing creative goods and contents for the Hispanic market; it is between the United States, the market with highest revenues, and Latin America.
  • According to the Cervantes Institute, there are 572 million Spanish speakers. Experts estimate that there will be 754 million people with different degrees of mastering the language by 2050. There are 58 million people in the United States with diverse levels of to understand Spanish; it is estimated that in 2060 the United States will be the second largest country by the number of Spanish speakers, after Mexico, making the neighbor country a main market for contents in Spanish.

Competitive costs. According to KPMG's Competitive Alternatives 2016, Mexico is cost wise 33.0% and 36.0% more competitive than the United States on Software design and Digital entertainment, respectively.

 

Creative industries

    Economic Units

    Foreign Direct Investment 2017
    (million dollars)

    Graduates from Arts programs

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    Success stories

    Dynamo

    The Colombian Company with production successes such as "The Hidden Face" and "Undertow" and who supplied production services to high profile projects such as Netflix's "Narcos" and Tom Cruise's "Star Made", opened offices in Mexico in 2017 to expand even more its operations, after it's consolidation at New York and in Spain. The company has formed a joint venture with the Mexican producer Juan Uruchurtu, who produced or on-line produced such projects as the series from Univisión-Netflix "El Chapo" and "El Acorazado"; "Mr. Avila " from HBO; and "La Hermandad " from Clarovideo. The recent artistic offer of Dynamo includes Jaime Osorio's thriller "Siete Cabezas", co-produced with Caracol TV, and "Burning Blue" from Diana Bustamante and Rhayuela Cine. It also has gone deeper on an almost unexplored genre in Latin America: the science fiction dramas such as "Monos" from Alejandro Landes and "Orbita 9" from Hatem Khraiche (in coproduction with the Spanish companies Cactus Flower and Movistar +).

    LA POSTA VFX

    The animation and VFX studio with headquarters in Buenos Aires, Argentina, has installed an operation unit at Mexico City's creative cluster of Roma-Condesa. The unit is equipped with all the technical and post-production capacities to create Hyper Real creatures and mix media. LA POSTA works with the main producers and agencies around the world, with a professional team who knows every aspect of the post-production process. The company is specialized in the design of fictional characters, hair, skin, feathers, fabric simulations, particles and fluids, among others. They also provide the real time remote monitoring service, including every process from color adjustment to final on-line version.