Netflix Invests US$1 Billion in Audiovisual Production in Mexico

Netflix will invest US$1 billion in Mexico to produce films and series over the next four years, averaging 20 productions per year. Additionally, the company will contribute to improvements at Estudios Churubusco.

This announcement was made during a speech by the company’s CEO, Ted Sarandos, at Mexico’s National Palace. Sarandos participated in La Mañanera alongside Mexico’s President, Claudia Sheinbaum.

“President Sheinbaum, at Netflix, we share your vision of a vibrant and prosperous Mexico, full of growth and opportunities, and we want to help make it a reality. That’s why I am pleased to announce that Netflix will invest US$1 billion in the production of series and films in Mexico,” Sarandos said in the Treasury Hall.

“I also want to announce a collaboration with Estudios Churubusco,” he added. Netflix will invest $2 million in these iconic studios to support the modernization of their facilities.

Sarandos stated that this investment will “contribute to the growth of Mexico’s audiovisual industry,” which adds $3 billion to the country’s GDP and generates jobs and opportunities across Mexico.

LOCAL PRODUCTIONS

The investment will focus on local productions. “All our series and films are made in collaboration with local production companies and partners. This means we are investing in the creative community and helping talented people find their place in our industry,” Sarandos said.

This investment also benefits catering, hospitality, transportation, and manufacturing services. He highlighted the case of Pedro Páramo, who contributed over 375 million pesos to Mexico’s GDP and provided jobs for thousands of local production crew members, hundreds of technicians and artists, and dozens of traditional musicians.

The film required more than 5,000 costume pieces crafted in collaboration with experts in traditional textile arts. Additionally, sales of the novel Pedro Páramo tripled nearly 70 years after its original publication.

ECONOMIC IMPACT OF THE AUDIOVISUAL INDUSTRY

Sarandos emphasized that investments in the audiovisual industry have a multiplier effect. A recent study found that Mexico’s audiovisual sector contributes $3 billion annually to the national economy, with every dollar spent generating $1.60 in added value.

NETFLIX’S HISTORY IN MEXICO

The CEO highlighted that Mexico holds a special place in Netflix’s history. A decade ago, the platform produced Club de Cuervos, its first original series outside the U.S.

He also mentioned that Roma, directed by Alfonso Cuarón, was the first Mexican film and the first Netflix production to win the Oscar for Best Foreign Film.

Additionally, Netflix produced Bardo, directed by Alejandro G. Iñárritu, which was Mexico’s official submission for the 2022 Oscars. A year later, Guillermo del Toro’s Pinocchio won the Academy Award for Best Animated Feature, another first for both Netflix and Mexico.

Sarandos expressed excitement for upcoming series such as Mal de Amores, Las Muertas, and the Juan Gabriel biopic, which will be released soon.

Netflix also established its Latin American headquarters in Mexico City in 2020, when Sheinbaum was mayor. Since then, its local workforce has grown tenfold.

Following Netflix’s arrival in Mexico City, nearly 300,000 jobs have been created.

“It’s not just about showcasing Mexico to the world through Netflix series. Mexico must be seen globally. But beyond that, there’s also significant economic development and job creation through production and tourism,” Sheinbaum noted.

PROPOSED LAW TO REGULATE STREAMING PLATFORMS

In mid-February, reports surfaced that the Mexican government is considering regulating digital platforms through a proposed law. This initiative aims to require streaming platforms to contribute to a “solidarity fund” to help maintain telecommunications infrastructure. The proposal seeks to ease the financial burden on operators like Telcel and AT&T, according to Expansión.