While the United States remains the global leader in the entertainment industry—valued at $649 billion in 2024 and projected to reach $808 billion by 2028—the transatlantic connection between both regions is redefining the geography of audiovisual production in Europe.
The Spanish capital has become a key partner for American companies seeking to expand their global footprint, attracted by its competitive environment, advanced infrastructure, and high concentration of creative and technological talent.
The vitality of the U.S. audiovisual industry continues to set the global pace. In May 2025, streaming accounted for a record 44.8% of total television viewership in the United States, surpassing for the first time the combined share of broadcast and cable television. This shift—representing 71% growth since 2021—confirms the consolidation of the digital model as the dominant force in entertainment consumption. In parallel, spending on digital video reached $64 billion in 2024, growing 18% year-over-year and projected to hit $72 billion in 2025. According to the Interactive Advertising Bureau, digital video now represents nearly 60% of total TV and video advertising spending.
Moreover, 86% of digital video buyers are using or plan to use generative artificial intelligence for content creation, driving new forms of international collaboration and production. Within this context, Madrid stands out as one of the most promising global hubs for this new era of audiovisual expansion.
In Spain, the Community of Madrid concentrates the core of the country’s audiovisual activity. More than 3,600 companies in the sector generate €7.6 billion in annual revenue and sustain over 30,500 direct jobs. In 2023, a total of 1,094 productions were filmed across 54 municipalities, a 15% increase from the previous year. Within the city of Madrid alone, there were 41 films, 53 series, and more than 430 commercials produced. The City Council of Madrid processed over 11,400 filming permits, while the Madrid Film Office provided nearly 3,900 specialized production services, reinforcing the capital’s reputation as one of Europe’s most film-friendly and efficient destinations.
Madrid’s audiovisual infrastructure plays a crucial role in this success. At its center stands Madrid Content City, located in Tres Cantos, now in its fourth phase of development. With an investment of over €200 million and spanning 240,000 square meters, it has become one of the largest audiovisual business complexes in Europe.
The site houses 12 sound stages ranging from 1,200 to 2,000 square meters, more than 40 post-production suites equipped with cutting-edge technology, and two additional sound stages scheduled for completion in 2026. Complementing this, a new 30,000-square-meter production hub is under construction in Villaverde, featuring five independent studios with facilities ranging from 1,200 to 2,500 square meters. This expansion reflects both investor confidence and the increasing demand for highcapacity production spaces in the region.
Madrid’s appeal extends beyond its infrastructure. With over 300 days of sunshine per year, the region offers exceptional natural light conditions that significantly reduce production costs. Within a two-hour radius from the capital, producers have access to 179 municipalities with diverse landscapes—deserts, forests, mountains, and urban areas—making the region an unparalleled natural set. Labor and operational costs remain among the most competitive in the European Union, within a stable and investor-friendly regulatory environment. The region also leads Europe in digital infrastructure, with 98.8% fiber-optic coverage, 97.3% 5G penetration, and 41 data centers providing 164 MW of installed capacity. Connectivity is further enhanced by Adolfo Suárez Madrid–Barajas Airport, the third busiest in the European Union, offering direct flights to 182 destinations in 67 countries.
This solid foundation is reinforced by an education and talent ecosystem that feeds the industry with highly qualified professionals. Madrid’s universities and film schools rank among Spain’s top institutions in audiovisual and digital media training, ensuring a steady supply of skilled workers for both local and international productions. The presence of leading tech firms and digital media companies generates strong crosssector synergies, fostering innovation and further consolidating Madrid’s reputation as a creative and technological hub.
American companies have been central to this transformation. Warner Bros. International Television Production España & Portugal has operated from Madrid for nearly two decades, producing and adapting successful formats for audiences across multiple markets. Netflix, meanwhile, took a major step in 2018 by opening its first European production hub in Tres Cantos—a 22,000-square-meter facility, the largest of its kind in the European Union. The company has announced investments of over €1 billion between 2025 and 2028 and has produced more than 1,000 titles in Madrid since 2017, generating over 20,000 jobs in the audiovisual sector. Skydance Media manages from Madrid its largest animation studio, with 700 employees, while Electronic Arts operates its global localization and certification center from the capital, employing nearly 600 professionals from more than 40 nationalities.
The region’s competitiveness is further strengthened by a comprehensive incentive framework. Productions filmed in Madrid benefit from tax deductions of 30% on the first €1 million of qualifying expenses and 25% thereafter, with a cap of €20 million per feature film and €10 million per series episode. The Madrid Film Office acts as a onestop shop for international productions, expediting permits and facilitating coordination with public authorities. The regional government complements these incentives with direct grants and support programs, aligning with the Spain Audiovisual Hub Plan, which mobilizes €1.71 billion to attract international investment and solidify Spain’s leadership in the global creative industries.
For American investors, the Community of Madrid represents far more than an appealing option—it is a strategic gateway to European and Latin American markets. The convergence between U.S. technological leadership and Madrid’s innovative ecosystem is paving the way for a new phase in global audiovisual production. From the heart of Europe, Madrid offers a stable, competitive, and creative platform for U.S. companies to expand internationally and help define the future of global entertainment.