Netflix announces a $1 billion investment to expand Mexico’s film and television industry over the next four years, signaling a shift in its global content strategy. This development follows the company’s decision to scale back on commissioning original productions from Nigeria’s Nollywood film sector.
Netflix co-CEO Ted Sarandos shares the news during a press conference with Mexican President Claudia Sheinbaum, stating that the investment will directly support Mexican production companies and drive growth within the country’s audiovisual industry.
As part of this expansion, Netflix commits $2 million to upgrade facilities at Mexico City’s historic Churubusco Studios. Additionally, the company allocates over $1 million to programs aimed at supporting emerging filmmakers and behind-the-scenes talent across Mexico’s creative industry.
Reduced Investment in Nollywood Originals
This announcement follows a sharp reduction in Netflix’s financial support for original productions from Nollywood. Nigerian filmmaker Kunle Afolayan reveals that Netflix has significantly cut back its funding after investing approximately $23.6 million in the Nigerian film industry over eight years.
Despite scaling down original content investment, Netflix remains open to acquiring high-quality Nigerian films that meet its standards. However, this decline in funding raises concerns among Nigerian filmmakers and reflects a wider industry trend, with platforms like Amazon Prime Video also reducing their investment in African content.
Why Mexico Becomes a Priority
Netflix’s connection to Mexico dates back to 2011, when it launched its services in the country. In 2015, Netflix produced its first international series, Club de Cuervos, marking a major milestone in its global expansion strategy. The company further solidified its commitment by establishing its Latin American headquarters in Mexico City in 2020.
“Mexico plays a vital role in Netflix’s global journey,” says Sarandos. “Our early success with Club de Cuervos influenced our approach to local productions worldwide.”
Netflix’s partnership with Mexican creators has resulted in critically acclaimed works such as Roma, Bardo, and Guillermo del Toro’s Pinocchio, which wins Best Animated Feature at the Academy Awards. Upcoming projects include Love Sick, The Dead Girls, and a documentary exploring the life of Mexican music legend Juan Gabriel.
Netflix’s workforce in Mexico grows from 30 employees to nearly 400 in six years, reflecting its deepening commitment to the region. The $1 billion investment highlights the platform’s dedication to nurturing local talent and producing content that resonates globally.
While Netflix accelerates its expansion in Latin America, its reduced investment in Nollywood leaves many African filmmakers concerned about the future of international collaborations within the region.
