Netflix invests one billion US dollars in Mexico

While US President Donald Trump threatens Mexico with punitive tariffs, Netflix is investing heavily in its neighboring country. Over the next four years, the US video streaming service will produce around 20 films and TV series a year in Mexico and spend around one billion US dollars on them. This was announced by Netflix CEO Ted Sarandos last week.

"We at Netflix share your vision of a vibrant and thriving Mexico, so I am pleased to announce that Netflix will invest one billion dollars over the next four years in the production of series and films in Mexico, which will help grow the audiovisual industry and create jobs and opportunities throughout the country," said Sarandos on Thursday at the morning press conference of Mexico's President Claudia Sheinbaum in Mexico City. All series and films will be produced in collaboration with local production companies and partners, Sarandos added.

Sheinbaum explained that Netflix's investment in Mexico's film industry would create many jobs that go beyond direct production, for example in the hospitality industry, the textile sector and tourism. "It's an industry that gives the economy a big boost," said Mexico's president. The investment "is not only important for Mexico to be seen in the world, but also because of the economic development and jobs created by production."

Mexico a good place for Netflix

Netflix has already invested in productions in Mexico in the past. Netflix's first Mexican in-house production was the TV series "Club de Cuervos" about a fictional soccer club, which was filmed between 2015 and 2019. Last year, the US company produced the novel adaptation "Pedro Paramo". According to Sarandos, the number of people working on Netflix productions in Mexico has increased more than tenfold in the last six years. "Our most recent film, 'Pedro Páramo', contributed more than 375 million pesos (17.5 million euros) to Mexico's gross domestic product and employed thousands of locals on the production team, hundreds of technicians and artists and dozens of traditional musicians," he said.

According to Sarandos, Netflix has already agreed a collaboration with the Estudios Churubusco in Mexico City, one of the oldest film studios in Latin America. The US company will spend two million US dollars on its renovation. Mexico is a good location for filming due to its geographical diversity, the Netflix boss continued. His company is also planning to finance programs to make it easier for talented people behind the camera to enter the industry.

Netflix's billion-euro investment comes at an economically uncertain time for Mexico. As it believes the neighboring country is not taking sufficient action against migration and drug smuggling, US President Donald Trump has threatened punitive tariffs against imports from Mexico, complicating the business climate for companies based or producing in Mexico. Netflix, on the other hand, can look back on an extremely successful year with strong economic results. In 2024, the Group closed its best year ever, with record figures for subscribers, revenue and profit. The streaming service broke the 300 million user mark for the first time. This was made possible by an increase of 19 million new subscribers.

(akn)