In February 2025, Netflix CEO Ted Sarandos announced at a press conference in Mexico City that it plans to invest over one billion dollars for the production of multiple films and series over the next four years. 

Netflix’s primary goal is to expand its content library to include more Latin American stories and to boost the Mexican film industry and storytellers, according to Reuters.  

The company also announced that it is investing two million dollars to revive Mexico City’s Churubusco Studios. Netflix hopes that expanding its production into Mexico will boost the economy and diversify the content library on the streaming platform.

Why does Netflix want to invest in Mexico’s film industry?

Netflix wants to invest in more streaming in Mexico to expand their global content reach. According to Netflix CEO Ted Sarandos, Netflix’s investment in Mexico will provide many opportunities for Mexican filmmakers and crew members.

“Being local is very important to us. It’s why all of our series and films in Mexico are made in partnership with local production companies and local partners. …We’re investing in the creative community, and helping talented people find their calling in our industry.” Sarandos stated at a press conference in Mexico City.  

Netflix hopes that expanding content production in Mexico will also provide economic benefits. Sarandos believes this expansion will boost the hotel industry, local restaurants and catering businesses, and the manufacturing industry, as productions utilize those services.

Since 2015, Netflix has shifted from primarily American-based content to more global productions. Whether it is South Korea’s hit-TV series “Squid Game to France’s “Lupin”, all of these productions fall under an initiative which Netflix calls its “Local Production Strategy.” 

What is Netflix’s Local Production Strategy?

Netflix’s Local Production Strategy is a strategy implemented by Netflix to produce more content on a global scale and create content that reflects the cultures where it is produced. According to Accelingo, this strategy is about creating content that appeals to a wider audience while also adapting the Netflix platform to varying countries.  

Netflix’s strategy of localization benefits both the service and global consumers. By producing content locally, films and series are more authentic to different cultures and countries. Netflix’s newest expansion into Mexico is part of the localization strategy to create more stories that appeal to the Mexican and Latin American market.  

Why is Netflix focusing on Mexico for it’s content production?

Mexico’s film industry has proven to be very successful for Netflix. The Netflix film, Roma, was the first Mexican movie to win Best Non-English Language film at the Academy Awards. Netflix’s first ever series produced outside of the US was a Mexican series called Club De Cuervos. Netflix’s local production strategy has shown itself to be very important for the service.  

Spanish and Portuguese streaming content increased by 266% from 2020 and 2024, according to Parrot Analytics. Additionally, the number of Mexican shows on streaming platforms outnumber their other Spanish-speaking countries content by 2 to 1. Netflix is aware of how valuable the Mexican film industry is and by investing in numerous shows, they are hoping to grow their subscriber base and increase revenue.  

By creating diverse content in different countries with local talent and filmmakers, Netflix is not only able to appeal to the region where the content was produced, but has the opportunity to create popular international series and films globally, as was the case with Squid Game. 

What opportunities will this bring to Mexican and Latin American filmmakers?

This investment will bring about numerous opportunities for local Mexican filmmakers. “It’s not only important for Mexico to be seen in the world, but also because of the economic development and jobs generated by a production.” Mexican President Claudia Sheinbaum stated.

The Mexican streaming market is projected to increase its revenue by $8.4 Billion in 2030, according to Grand View Research. This is one of the many reasons that Netflix wants to tap into the expanding and popular Mexican streaming market.  

Netflix’s investment is sure to be highly beneficial for the Mexican film industry. Could this investment usher in a new era of Latin American film and television?