U.S. HISPANIC
2023 is the year to prepare for the growth of the Mexican market
Maribel Ramos-Weiner| 21 de junio de 2023
Avelino Rodríguez de la Canacine
Avelino Rodríguez, president of the Canacine, is used to seeing the glass half full, instead of half empty. Thus, faced with a year in which production capacity has contracted compared to last year, Rodríguez explains that 2022 was an atypical year, a product of the lag caused by the pandemic and the platforms’ war to position themselves in the market, and that now is time to prepare for the growth that Mexico will experience from now on.
These considerations are pertinent taking into account that this Monday the 19th was launch PRODU’s Mexico Special (that will be summarized in a digital magazine on July 3) and for the next two weeks will allow us to review the challenges and opportunities posed by the most relevant market in Latin America, as well as the leading role of its different players in the audiovisual industry.
Avelino Rodríguez explained that, together with the 50% drop for many audiovisual production companies in project demands, we must add a year in which the situation of the global economy means that there is no money for entertainment consumption in the US.
“We have a difficult scenario in the Mexican market where audiovisual production is experiencing a slump with lower budgets. We should wait a little while before the situation returns to normal in order to see growth. However, what is evident is that the demand from viewers continues to grow and I think that 2023 is a year to prepare for growth,” he assured.
Rodríguez explained that 2022 cannot be used as a reference year, instead it is more reliable to use 2020 or 2019. “I think that a growth of 15 or 20% like we are experiencing is huge for any industry. But when compared to last year —which was extraordinary—, and which for many have dropped 50% it is alarming from a short-term perspective. But if you look at 2019 it’s a 40% climb for Mexico. The production of both Netflix and Amazon, 50 contents in three years, a US$300 million investment, did not exist before. There is more volume, it just went down in relation to 2022, but we are going to continue growing.”
TOWARDS THE MATURITY OF THE INDUSTRY
The Mexican audiovisual industry has been on the rise, not only in terms of number and quality of productions, but also in its strengthening and maturity. In a short time, it has consolidated good practice standards and promoted initiatives that move the industry towards the excellence that the global market demands.
Paradoxically, the difficulties brought about by the pandemic were the driving force for unity, reflection and the creation of ties between the players in the industry. Avelino Rodríguez mentioned that Canacine and AMFi had been working on good practice manuals, but having to organize protocols for the operation of the production sets under security measures, created a greater leap to the industry’s need to consolidate processes.
“The reflection was: by doing things well, we can move ahead. For the first time the entire industry thought about a standard and was serious because health was at stake,” he said, after commenting that this enormous industry’s effort and that was so successful, allowed it to be the third or fourth industry to open activities in Mexico City during the pandemic.
“From then on, a virtuous circle was created,” he said. “One thing led to another. After that came the tourist activity linked to production and that generated economy for the city, but also was the production that began in a higher quality. There was a market transfer, from the local market to the international market, which also asks for a higher standard and to professionalize the services. At the same time, the volume that was stuck on the platforms during 2020 and 2021, later unstuck in 2022, generated such a volume of production that if there are not in place very clear rules and processes, then it is impossible to move forward,” he said.
Rodríguez commented that the Mexican audiovisual industry has experienced a growth spurt, which has led them to become professional. The Chamber took the conversation from the professionalization of production, which will always lead to greater opportunities. Finally, he stated that they have had important approaches to different levels of government, and the incentive proposal to attract investment from the audiovisual industry to Mexico is on track. “We hope that in 2025 we can say that this objective has been achieved (incentives for audiovisual production in Mexico). So, we have to put the pieces together so that when this new boost to production comes, we have capacities, infrastructure, specialties, equipment, locations ready.”
He said that in Canacine they have the opportunity to close a new story of growth in the Mexican audiovisual industry, for which innovation, education and a different way of thinking are required, more open than what has existed before in the country’s industry.
That is why they work to map the capabilities of the regions of Mexico, in order to promote the development of the audiovisual industry throughout the country in a more organized way.
“In the previous approach you depend a lot on the government and the creation of public funds, subsidies, etc. That cycle has ended. Now we have the responsibility of creating a new industry floor, which includes subsidies and aid, but which also has to include a different perspective: greater investment, exports, incentives to attract investment, among others”, he argued.
That is why 2023 is the year to prepare for the Mexican audiovisual industry growth that is coming.
View interview with Avelino Rodríguez, Canacine’s President about the Mexican audiovisual market
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