Mexico. To drive innovation and growth in the media space in Mexico, IFC is evaluating with Lemon Studios, a leading film and television production studio in the country, the establishment of the first investment vehicle in intellectual property rights in Mexico and Latin America.
The IP investment vehicle focuses on acquiring, managing, and trading intellectual property assets and royalties from movies and series. Lemon Studios is known for producing content for global platforms such as HBO, Netflix, Prime Video, VIX, and Apple TV.
According to the United Nations Conference on Trade and Development (UNCTAD), intellectual property rights can play a crucial role in supporting a thriving creative industry. A strong intellectual property ecosystem is vital to promoting innovation in Latin America, where the creative economy generates more than US$177 billion in annual revenue and supports more than 10 million jobs.
"This intellectual property rights investment vehicle has the potential to be a game-changer to transform the media landscape. Our collaboration with IFC will allow us to pioneer a new era of growth for the creative sectors in Mexico and, by extension, in the Latin American region," said Billy Rovzar, Founder and CEO of Lemon Studios.
"Mexico's audiovisual sector is experiencing growth driven by technological advances and an increase in demand for Spanish-language content. Given its profile as a leading production hub, this effort aims to introduce a new asset class to Mexico's capital markets, supporting growth, innovation and talent in the audiovisual sector," said Juan Gonzalo Flores, IFC's Country Manager for Mexico.
The video streaming industry reached a global valuation of US$555.89 billion in 2023 and is expected to reach US$2.49 trillion by 2032, with an average growth rate of 18.7 percent. According to the Mexican Film Institute (IMCINE), Mexico produced 234 films in 2023, and 56 percent of the funding came from private sources. Despite its prospects, the industry faces infrastructure challenges, financing constraints, and regulatory and regulatory risks.
The partnership marks IFC's first pre-investment commitment in Latin America's media sector, cementing its commitment to nurturing the region's creative industries. Through the project, IFC hopes to support new economic opportunities and jobs for women and youth. In addition, the development of Mexico's audiovisual sector is also expected to boost equity, social inclusion, and sustainable tourism.
IFC has invested more than US$830 million in creative industries in emerging markets over the past 18 months and is committed to increasing its commitments in this sector.
