Streaming juggernaut Netflix plans to spend $ 1 billion on film and TV production in Mexico over the next four years. CEO Ted Sarandos announced the plan on Thursday at a press conference with Mexico President Claudia Sheinbaum. The injection of capital can finance an average of 20 productions per year.

During Thursday’s event, Netflix also announced a $ 2 million investment in the Churubusco studios of Mexico City to improve the facilities. The goal is to strengthen the national film industry.

‘Our journey in Mexico took us from north to south. From sunsets to the Baja California Peninsula to sunrise on the Caribbean coast, ”Sarandos said. ‘We produced in more than 50 places in 25 states. With this renewed commitment, we look forward to deepening our partnership even further. “

Mexico holds a key place in Netflix’s history. The TV show Club de Cuervos, produced in the country and promoted in 2015 was the first series shot outside the United States.

Since then, Netflix has continued to make projects in Mexico that were popular as well as abroad. Films like Roma, Bardo, and Pinocchio, By Mexican directors Alfonso Cuarón, Alejandro González Iñárritu, and Guillermo del Toro, were an edge for the Streamer respectively. In 2020, the company established its Latin American headquarters in Mexico City, and for the past five years its workforce has grown tenfold.

“Together with the government of Mexico and the industry, we will continue to finance programs that help develop different and creative talent behind the scenes in the world of entertainment,” Sarandos emphasized.

CEO revealed that the recent production of the play film Pedro paramo contributed more than 375 million pesos (about $ 18.5 million) to the gross domestic product of Mexico and produced thousands of jobs in sectors such as textile manufacturing, hospitality and transport.

Sheinbaum took note of Netflix’s decision to invest in the country, reflects not only Mexico’s tax incentives and competitive production costs, but also the country’s cultural and creative wealth, a wealth that enabled the platform to make the platform extend by the production of original content.

‘These productions are through Mexican talent; They do not come to a place to produce an idea that has been generated somewhere in the world because it is cheap, “Sheinbaum said. “It’s about Mexican talent, creativity and cultural wealth.” She suggested that her administration will support these projects with possible government support for the sector.

The business opportunities for Netflix in Mexico are clear. According to the marketing firm Bango, the country has millions of streaming clients and each has several subscriptions at a time. Netflix is ​​one of the three most popular platforms under Mexicans. According to a study by HR Media, this is the second most commonly used video-on-demand application, with a 21 percent market share.