Netflix Set to Invest $1B in Mexico, Bolstering the Local Industry

Netflix is set to make a significant investment in Mexico, committing $1 billion for the production of series and films over the next four years. This substantial investment, which will span from 2025 through 2028, was announced by Co-CEO Ted Sarandos during a press conference with Mexico’s President Claudia Sheinbaum on Thursday. This move comes as Netflix continues to expand its global footprint, reaching further into international markets. As streaming platforms face increasing competition, this investment underscores Netflix’s commitment to fostering local talent and creative industries abroad, where it aims to replicate its successful model in the U.S., where shows like The Crown and Stranger Things exemplify such initiatives.

“This investment, and the productions derived therefrom, will benefit Mexican production companies and will contribute to the growth of the local audiovisual industry and the creation of opportunities nationwide,”
Netflix announced.

Beyond financial investment, Netflix is also planning to invest $2 million in Mexico City’s iconic Churubusco Studios. One of the oldest and largest production facilities in Mexico, these studios have been a cornerstone of the industry for decades. The investment aims to elevate the studio’s facilities, fostering a more modern and efficient production environment.

Alongside this, Netflix will continue to create and fund programs designed to develop diverse and creative talents behind the camera, thereby fostering career growth in the entertainment industry. Last year, Netflix unveiled a fund worth more than $1 million in Mexico, to be used in 2024 and 2025 for this purpose. This initiative mirrors similar programs in the U.S., where Netflix invests in training and development for young filmmakers, such as through the Netflix Foundation.

Netflix has a long-standing history in Mexico. The company entered the Mexican market in September 2011 and produced its first series outside the U.S. in 2015, Cuervos Club, a widely acclaimed show that exemplified the power of local storytelling. Since then, Netflix has been pouring resources into developing localized content, reflecting the growing trend in the entertainment industry to tap into diverse storytelling. The success of international shows like Lupin (France) and Money Heist (Spain) highlights the potential of this strategy.

In 2019, Netflix opened its first offices in Mexico and decided, the very next year, to set up its Latin American headquarters there. This move has seen a significant increase in the local workforce, growing from 30 employees to nearly 400 over the past six years. This growth demonstrates Netflix’s ambition to expand its presence in the region and its commitment to supporting local economies.

“This country holds a special place in Netflix’s own history”,
Sarandos said,
“referencing Cuervos Club. ‘We created it in Mexico for Mexico — and it paved the way for our programming strategy, which is all about local production’”.

Sarandos emphasized the importance of being local, stating, It’s why all of our series and films in Mexico are made in partnership with local production companies and local partners. Every single one. That means we’re investing in the creative community, and helping talented people find their calling in our industry. But we’re also helping people in other industries make a living, too — from catering and hotels, to transportation and manufacturing.

The Academy Award-winning film Roma, directed by Alfonso Cuarón, showcased the rich talent pool and profound storytelling capabilities of Mexican filmmakers. Produced in Mexico, the film took home the Oscar for best international feature, marking a significant milestone for Netflix and the Mexican film industry. Furthermore, Alfonso Cuarón’s Bardo, Mexico’s entry for the 2022 Oscars, and Guillermo del Toro’s Pinocchio, which won for best animated feature, highlighted that these collaboration efforts are having lasting impacts.

“Addressing further accomplishments, Sarandos, Concluded: ‘Over the years, we’ve worked with Mexican creators on hundreds of other series and films that have captured the hearts of Mexican audiences — from The House of Flowers to Where the Track Ends,to the recently announced Love Sick and The Dead Girls. And we can’t wait for you to see a new documentary on the life and art of Juan Gabriel, which is coming soon. All of this helps explain why in 2020, when President Sheinbaum was the mayor of Mexico City, we decided to establish our Latin American headquarters here’ Netflix Public Relations Team concluded to all the inquirers”.

The implications of Netflix’s investment extend beyond entertainment. By fostering local production, Netflix is contributing to the economic development of Mexico, creating jobs, and stimulating local businesses. This strategy aligns with both global and domestic trends, where major corporations are increasingly looking to invest in foreign markets to drive growth and innovation. As Netflix continues to expand into new territories, its model of investing in local talent and production facilities offers a blueprint for other major tech and entertainment conglomerates, reinforcing the U.S. entertainment industry’s recognition as a global leader in films and digital content.