Netflix has announced a $1 billion investment in Mexico's film and television industry over the next four years, reinforcing its commitment to Latin America while scaling back on original productions in Nollywood.
The announcement was made by Netflix co-CEO Ted Sarandos during a press conference with Mexican President Claudia Sheinbaum.
"This investment, and the productions derived from it, will benefit Mexican production companies and contribute to the growth of the local audiovisual industry," Netflix stated.
As part of its expansion, the streaming giant will also invest $2 million to upgrade Churubusco Studios in Mexico City and allocate $1 million to talent development programs supporting behind-the-scenes creatives.
Nollywood Funding Cut Sparks Concern
Netflix's increased focus on Mexico comes less than a year after Kunle Afolayan, one of Nigeria's top filmmakers, revealed that the platform had significantly reduced funding for Nollywood originals.
Over the past eight years, Netflix invested $23.6 million in Nigeria's film industry, backing major productions like Aníkúlápó, Òlòtūré, and Blood Sisters. However, the recent slowdown has raised concerns among industry stakeholders, who speculate that unresolved tensions with Nigerian producers contributed to the decision.
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Netflix insists that it is not abandoning Nollywood entirely and remains open to acquiring projects that meet its standards. However, the funding reduction follows a broader trend—Amazon Prime Video also cut back on African content earlier this year, further unsettling the industry.
Netflix's Deep Ties to Mexico
Netflix's relationship with Mexico dates back to 2011, when it launched in the country. The platform produced its first international series, Club de Cuervos, there in 2015 and established its Latin American headquarters in Mexico City in 2020.
"This country holds a special place in Netflix's history," Sarandos said.
He highlighted Netflix's track record in Mexico, citing hits like Roma, Bardo, and Guillermo del Toro's Pinocchio, which won Best Animated Feature at the Academy Awards.
Netflix has collaborated with Mexican creators on hundreds of projects, including The House of Flowers, Where the Track Ends, and the upcoming Love Sick and The Dead Girls. Additionally, a documentary on music icon Juan Gabriel is in production.
Shifting Priorities, Growing Divide
As Netflix deepens its investment in Latin America, its decision to scale back in Africa remains a sore point for Nollywood. The funding shift underscores changing priorities in the streaming market, leaving Nigerian filmmakers uncertain about the future of Netflix's presence in the region.
