Trends and Developments in the Media and Entertainment Ecosystem in Puerto Rico

Introduction

One of the leading media and entertainment industries in the world has historically been Hollywood. Positioning the United States as the premier force in audiovisual production and distribution, Hollywood defined the business model of film-making by leveraging its centralised and then-modern resources: the big studios and back lots; the expensive cameras and equipment; the world-renowned talent; and of course, its powerful marketing muscle. Now, more than a century later, the US government is struggling to keep productions in California, and even on its mainland, while other countries, such as South Korea and Mexico, have upped their game in the industry.

It seems that, while Hollywood still makes films and blockbusters, the rest of the world is creating content. Audiovisual production, in general, continues to be one of the main driving economic engines of the media and entertainment landscape, worldwide. So, having the option to produce any type of content, anywhere in the world, why stick to the US and its often strict and costly production models?

However, not all of the United States is Hollywood, guilds, studios, and costly rates. There are some places that offer different attributes; attributes that foster a complete media and entertainment ecosystem, built around local talent, flexibility, and resourcefulness. Whether filming vertically, immersing oneself in an experience, growing online fandom, or recycling pre-existing works, there is a place to do that and to export the work in an affordable and professional way: Puerto Rico.

Evolution of the media and entertainment ecosystem in Puerto Rico

Most people are familiar with Puerto Rico’s important musical legacy, which, for a long time, was probably the biggest contributor to the country's media and entertainment ecosystem. What most people are probably not familiar with is the growing audiovisual industry that, slowly but surely, has been evolving.

Puerto Rico's film-making history dates back to a time even before the concept of Hollywood. There are rumoured newsreels of soldiers arriving in the US invasion of Puerto Rico back in 1898, making the country one of the oldest subjects of the seventh art in the world.

The 20th century saw a slow build-up of an art form that produced mostly educational films as a means to spread information to rural towns around the island. It was not until almost the end of the century that it began to be spoken of as a potential "industry", as legislation emerged that would create different iterations of a Film Commission and provide grants and incentives for productions on the island. In the early 2000s, Puerto Rico began to regard itself as a film destination, as various film projects from the US and other countries started to visit and make use of the incentives, and as colleges and universities began to offer courses and degrees in related disciplines. This set in motion two very important initiatives: first, the country began to train a talent pool of creatives and technicians who are now leaders in their fields; and second, Puerto Ricans began to dream about audiovisual production (or, as it was then, “cinema”) as an economic development motor for the country.

The media and entertainment landscape of today

Today, the media and entertainment landscape of Puerto Rico is diverse and innovative, thanks in part to its rich cultural heritage, but also backed by the need to thrive in an ever-changing technological era.

A recent study by Sound Diplomacy (titled “Puerto Rico Music, Entertainment and Cultural Industries Strategy”, commissioned by Invest Puerto Rico in January 2025) reveals the positive economic impact the recent growth of this sector is currently having on the island. Gross domestic product (GDP) contributions, employment numbers, and the return on investment (ROI) in incentives are a few of the tangible measures that are validating the exponential growth of this sector and encouraging the dream that this could be something that is commercially sustainable.

Audiovisual production is probably the main economic driver. The country's film industry has slowly evolved from an almost entirely production services industry into one that also creates local films which travel the world to A-list festivals. While it lacks soundstages, Puerto Rico offers a wide range of external locations as well as small- to medium-sized studios that are fully stocked, often with state-of-the-art technology. Commercials, music videos, series episodes, podcasts, vertical content, web series, and YouTube content are constantly being produced by locals, for themselves and as a service. Influencers, YouTubers and other content creators have established themselves on the island, taking advantage of favourable tax rates for their streaming incomes. Multiple film festivals are held year-round that feature both local and international films in various formats.

Advances in technology have allowed the country to become competitive in the animation industry and an increasing number of local studios are springing up. While still in the early stages of growth, local indie studios and developers have begun to produce video games, mobile apps, esports tournaments, and related events. For the past decade, organisations and individuals have worked to connect this growing community, within the island as well as with other regions. As more universities and colleges produce graduate professionals in these disciplines, everyone is hopeful that this will be one of the leading sectors in the next decade.

Speaking of technology, about a decade ago, crypto enthusiasts and Silicon Valley techies figured out they could code from the beach and, since then, there has been a growing industry of software developers, programmers, and start-up entrepreneurs. From crypto to AI, some of these projects take advantage of the multiple incubators and accelerators that promote these activities on the island, as well as research and development incentives.

Going back to music, not only do Puerto Ricans take credit for “inventing” salsa and reggaeton, but some of the island's musicians have created sensationally renowned world hits that, once heard, are never forgotten. Local and foreign musicians have established their businesses in Puerto Rico because of the export incentives, as well as its proximity to other major music meccas such as Miami and México. After all, music is probably one of the most patriotic things that unite a country. Well… music and sports.

One of the perks of being a Commonwealth (and not a state) is that Puerto Rico gets to have its own sports teams in most major sporting events, such as the Olympics. Interestingly, local teams are attracting international athletes to join them as reinforcements, and descendants of Puerto Ricans are choosing to represent the island instead of their places of residence. Now, with sports betting legalised on the island, a whole new economic sector has opened up and continues to evolve around this strong market.

This year’s edition of Miss Universe is just one of the many international events that frequently visit the island, which include award ceremonies, talent contests, beauty pageants and popular concerts. Local comic cons, food cons, tattoo shows, esports tournaments, game jams, and even live action role-playing (LARPING) events are held annually. Immersive experiences, escape rooms, and mystery dinner pop-up events are also on the rise.

Finally, from award-winning rums to providing coffee to the Popes, beverages have also historically put the island on the map. While not necessarily considered “content” per se, it is an industry that has played a significant role in the local media and entertainment industry, by promoting concerts and events, sponsoring cultural projects, offering product placements in films, and boosting tourism. Aside from rum and coffee, visitors to the island can find a wide variety of local breweries that have begun to export their product, as the growing diaspora demands them.

General overview of doing business with Puerto Rico

It is no secret that studios and independent producers have been visiting the island for the past two decades because of its attractive incentive model. However, there are other factors that are relevant when choosing Puerto Rico as a place to do business in (or with) that apply to most sectors of the media and entertainment industry.

Other important factors include that, as a territory of the United States, Puerto Ricans abide by the same laws and currency, providing stability and certainty in basic processes. Once a territory of Spain, Puerto Rico is still a "spanglish" country: from its bilingual abilities to its habits and preferences, one may find the perfect combination of Spain and Latin America (SPLATAM) and US cultures everywhere, blending in seamlessly in the form of a song, a plate of food, or a podcast.

Conveniently located near Central America and in the eastern Caribbean, it is easy to travel to the Americas or to Europe. The geographical position of Puerto Rico is so strategic that there is no need to change time zones during daylight savings!

The island has basically two seasons: summer, and not-so-summer. It is generally sunny and warm most of the year. There is a short hurricane season that has been mastered over time (power generators, solar panels, and water reserves have helped productions pick back up very quickly in the unfortunate situations when a storm rolls in suddenly). From arid deserts, to rainforests, to beaches, to colonial streets, the diverse landscapes of Puerto Rico have been transformed into many different countries, in many eras, past and present.

From equipment rental to catering services, there is a wide variety of resources available on the island that reduce the cost of shipping, and travel. From certified accountants to licensed attorneys, there are qualified service providers that can help to build an enterprise from the start and throughout its growth. Experienced producers have handled multimillion-dollar projects with completion bonds, collection accounts, and sophisticated financing transactions. The pool of technicians includes members of the International Alliance of Theatrical Stage Employees (IATSE), the Directors Guild of America (DGA), the Screen Actors Guild (SAG), and the Writers Guild of America (WGA), as well as non-union labour. Musicians are generally registered with the leading US Public Relations Officers (PROs) (American Society of Composers, Authors, and Publishers/Broadcast Music, Inc – ASCAP/BMI).

Because Puerto Rico has similar legal and contracting principles and federal intellectual property laws as the US (more on this later), it is relatively easy to negotiate contracts with other US states. The island has adopted an American approach to negotiations (especially in production, legal and music-production matters), but there is still some Spanish influence remaining (such as the specific Author’s Moral Rights Act).

Intellectual property

The media and entertainment industry has thrived, in part, because of the intellectual property laws that protect creators and enable them to monetise their works. In Puerto Rico, US laws are generally followed, sometimes complemented by local laws.

In copyright matters, the primary governing statute is the federal Copyright Act of 1976, which regulates most economic rights over creative works (including amendments to Title 17 of the US Code, such as the Digital Millennium Copyright Act). Puerto Rico also has an Author’s Moral Rights Act of 2012, which grants moral rights in certain works and supplements the federal law only in areas not governed by the Copyright Act, as federal copyright law pre-empts territorial laws in the areas it covers.

Trade-mark protection is governed at the federal level by the Trademark Act of 1946 (Lanham Act). Unlike copyright law, the Lanham Act coexists with the Puerto Rico Trademark Act of 2009, which largely mirrors the federal statute but provides protection limited to the geographical territory of Puerto Rico.

Rights of publicity (or Image Rights) are governed in Puerto Rico by the Right of Publicity Act (Act No 139 of 1 August 2011). Currently, there is no federal right of publicity statute.

Trade secrets are governed by the Puerto Rico Uniform Trade Secrets Act (Act No 80 of 3 June 2011). There is no federal statute of general application governing trade secrets.

Patent protection is governed exclusively by the federal Patent Act (Title 35 of the United States Code). Puerto Rico has no local patent legislation.

Other important legislation to take into consideration is the Puerto Rico Civil Code of 2020 (which regulates other general aspects, such as contractual issues), and the Puerto Rico Incentives Code of 2019, as amended, (“Act 60”) which offer various incentives, such as:

• film tax credits for up to 55% of resident spend if structured as a local production or as a co-production;
• research and development tax credits for certain costs associated with the manufacture of intangible property; and
• preferential tax rates for income generated outside of Puerto Rico for intellectual property created in Puerto Rico.

Negotiating with the world

Considering Puerto Rico's political relationship with the United States, the island participates in the international legal framework through the treaties and conventions to which the United States is a party, including the Berne Convention and the Madrid Protocol.

In the audiovisual production space, currently there are no official co-production treaties with other countries and Puerto Rico cannot enter into international treaties independently. Puerto Rico can establish international contractual collaborations with organisations such as Ibermedia and companies are free to enter individually into contractual co-productions. This legal framework has, in many instances, provided greater flexibility when structuring international co-production arrangements, allowing Puerto Rican productions to adapt to the legal and financing requirements of different jurisdictions, which are often more restrictive.

Furthermore, and thanks to the incentives arising from Act 60, Puerto Rico has attracted the attention of many who want to settle their business in Puerto Rico (not just in the film industry), and many who want to work with locals without necessarily moving to the island themselves. Structuring the right partnership, co-production, or joint venture, can help leverage preferential tax breaks or drive access to generous tax credits in many sectors.

Because Puerto Rican creatives and entrepreneurs cannot depend on the island's audiences alone to generate considerable revenue, locals are often looking for opportunities to work with businesses and entrepreneurs from outside of Puerto Rico that can help leverage its needs and resources with those from other countries. The right match could be a win-win for both sides.

Government and private sectors

The Puerto Rico government has various departments, agencies, and public/private institutions that oversee public policy for the media and entertainment industries, including the administration of incentives and supporting promotional efforts for Puerto Rico as a place to do business. However, other than permit requirements, labour issues, and other standard procedures, there is not much regulation or interference with the private sector.

Puerto Ricans are known for their resilience in times of crisis (hurricanes, earthquakes, electricity outages, whatever it may be). Puerto Ricans working in (arguably) non-traditional industries have to be more than resilient: they have to be tenacious, innovative, and resourceful. The entrepreneurs and pioneers of the media and entertainment industry have been at the forefront of the sector’s evolution and will continue to lead the way.

Multiple associations (formally organised or loosely affiliated), as well as individual professionals, have contributed greatly to the promotion of Puerto Rico as a place to do business, to the structuring of international deals, to the export of the country's intellectual property, and to the evolving sophistication of its business models.

Non-profit organisations (such as Invest Puerto Rico and Centro de Economía Creativa) help to study and promote the sector with data, mentorship, and other important contributions. Academia continues to breed professionals in these sectors and promotes the transfer of knowledge. Professionals who have trained in other countries are returning to share their experiences and best practices with the local community. Foreign businesses have already established in Puerto Rico and discovered the benefits of working and living on the island.

Conclusion

In a world where media and content creation has evolved, there is a place that is a flexible, affordable, and resourceful option for today’s innovative media and entertainment enterprises: Puerto Rico. Whether the focus for an entrepreneur is setting up shop on the island, or doing business with a local, Puerto Rico offers much more than mere incentives. With the formality and professionalism of the US, but with the flavour and sensitivity of SPLATAM, Puerto Rican culture actually makes a difference in the way its people work. Culture is also making a difference in the areas in which Puerto Ricans work, as the media and entertainment industry continues to expand and make a positive socio-economic impact on the island. It is to be hoped that this trend continues and that Puerto Ricans can continue to bridge the gap between their island and the world.