Netflix to Invest $1 Billion in New Mexico

  • Sarandos added it build one of the largest film and television production bases in North America.
  • State and local governments will provide funding and tax incentives.
  • As part of the transaction, Netflix agreed to lease 130 acres from the state land office and purchase another 170 acres from private hands.

According to reports, Netflix announced this week that it will invest US $ 1 billion in ABQ Studios in Albuquerque, New Mexico  for content production. In addition, Netflix also plans to further expand the studio’s current site by 300 acres (1.21 square kilometers), Netflix CEO Ted Sarandos said in a joint announcement.

Theodore Anthony Sarandos Jr. is an American businessman who serves as the Co-Chief Executive Officer and Chief Content Officer for Netflix. Sarandos oversees Netflix’s annual budget of over $6 billion.

Sarandos added it build one of the largest film and television production bases in North America. Netflix predicts that the program will create approximately 1,000 new content production jobs in New Mexico in the next 10 years.

In order to complete this development plan, 1467 jobs in the construction industry will be added locally.

“New Mexico provides an outstanding production and business environment in close proximity to Los Angeles with some of the best crews and creative talent in the world,” said Sarandos, who announced the news Monday alongside New Mexico Gov. Michelle Lujan Grisham and Albuquerque Mayor Tim Keller.

“The expansion will bring many new high-tech and production jobs to the region. It allows us to be more nimble in executing our production plans while cementing the status of the region as one of the leading production centers in North America.”

“Ever since Netflix first chose New Mexico, they have been nothing but an incredible partner, pushing the boundaries of innovation and expansion while providing fulfilling work opportunities for so many New Mexicans,” said Gov. Lujan Grisham.

The planned expansion and $150 million in capital expenditures will be used to add 10 new studios, post-production services, restaurants, backyard and training facilities, clothing rooms, commissaries and other temporary buildings.

The New Mexico state government will provide $17 million in funding. The City of Albuquerque will provide $7 million, including $6 million in physical investment in infrastructure. Albuquerque will also issue bonds to reduce property taxes and other tax expenses for 20 years to subsidize Netflix’s first $500 million investment in expansion.

Said Alicia J. Keyes, New Mexico Economic Development Department Cabinet Secretary:

“This expansion is the result of an incredible partnership with Netflix that will set a precedent in the industry and signal that New Mexico is the place to be for film and television production. Not only will there be an additional 1,000 high-paying jobs for New Mexicans plus an estimated $2.5 billion that will benefit New Mexico’s economy, but we are setting the stage for future generations to stay in our state and have employment opportunities with one of the world’s leading global digital media companies.”

Netflix, Inc. is an American technology and media services provider and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California.

As part of the transaction, Netflix agreed to lease 130 acres from the state land office and purchase another 170 acres from private hands. Sec. Keyes said the deal may eventually bring the state $2.5 billion in expenditures.

Netflix also pledged to support content creators and filmmakers from Native, Latino, black and other minorities in New Mexico.

The current Netflix production in New Mexico includes “The Harder They Fall” and “Intrusion.” The company is expected to start shooting the next season of “Stranger Things” locally.

Albuquerque Mayor Tim Keller said:

“When we brought Netflix to Albuquerque, we put the spotlight on our city’s strong film economy and joined our brand to one of the top companies in the new global economy. Now, with this expansion, we’re looking forward to doubling the impact to 2,000 jobs for folks from all walks of life and a $2 billion investment into Albuquerque’s economy over the next decade.”

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Joyce Davis

My history goes back to 2002 and I  worked as a reporter, interviewer, news editor, copy editor, managing editor, newsletter founder, almanac profiler, and news radio broadcaster.

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