This announcement follows the company's recent decision to reduce its commissioning of original content in Nollywood.
The news was shared on Thursday by Netflix co-CEO Ted Sarandos during a press conference alongside Mexican President Claudia Sheinbaum.
According to Netflix, "This investment and the resulting productions will support Mexican production companies and foster the growth of the local audiovisual industry."
In addition to this substantial investment, Netflix plans to allocate $2 million to upgrade the historic Churubusco Studios in Mexico City. The company is also committed to developing emerging talent, dedicating over $1 million to initiatives that support behind-the-camera creatives.
This development comes less than a year after Kunle Afolayan, a prominent Nigerian director, disclosed that Netflix had significantly reduced its funding for Nollywood originals. This followed an eight-year investment totaling $23.6 million in Nigeria's flourishing film industry.
While Netflix has clarified that it is not completely withdrawing from Nollywood and remains open to acquiring suitable projects, the decision to cut back on original productions has raised concerns among industry stakeholders. Speculation suggests that this shift may be linked to ongoing tensions between Netflix and certain Nigerian producers.
Over the past eight years, Nollywood filmmakers have collaborated to create some of Netflix's most successful African titles, such as Aníkúlápó, Òlòtūré, and Blood Sisters. However, the reduction in funding reflects a wider trend, as Amazon Prime Video also scaled back its investment in African content earlier this year, causing further unease within the industry.
Netflix's dedication to Mexico has a long-standing history. The streaming service made its debut in the country in 2011, and by 2015, it had produced its first international series, Club de Cuervos. In 2020, Netflix further solidified its presence by establishing its Latin American headquarters in Mexico City. Over the past six years, the company's local workforce has grown significantly, increasing from 30 to nearly 400 employees.
"This country is integral to Netflix's journey," Sarandos remarked on Thursday. "Club de Cuervos was instrumental in shaping our programming approach, which emphasizes local production."
He also pointed out Netflix's achievements in Mexico, highlighting the Oscar-winning film Roma, the critically acclaimed Bardo, and Guillermo del Toro’s Pinocchio, which received the Academy Award for Best Animated Feature.
"Throughout the years, we have collaborated with Mexican creators on numerous series and films that resonate with audiences," Sarandos noted, mentioning titles such as The House of Flowers, Where the Track Ends, and the forthcoming Love Sick and The Dead Girls. Additionally, Netflix is set to unveil a documentary focusing on the life and artistry of the renowned Mexican musician Juan Gabriel.
As Netflix continues to enhance its investment in Latin America, its choice to reduce operations in Africa remains a contentious issue.