Netflix to open New Mexico facility, pledges $1B economic boost
Equity Research managing director David Miller explains why he is bullish on Netflix.
Netflix will open a new production facility in Albuquerque, New Mexico, as part of an initiative it said will add $1 billion to the state’s economy over the next decade and create 1,000 new jobs per year, the company said Monday.
The streaming giant plans to produce original content, including film and television series, at the New Mexico facility and other locations throughout the state. Netflix is also in final talks to acquire ABQ Studios to serve as a local headquarters.
“Netflix is at the cutting edge of the film and television industry and it’s an honor to welcome them to New Mexico,” said New Mexico Gov. Susana Martinez. “After years of hard work to cut taxes and make New Mexico business-friendly, we’re seeing incredible results. Now, New Mexico is leading the nation in economic growth and lowering unemployment and we’ve brought the world’s leading internet entertainment service, Netflix, to our state.”
Netflix will receive funding in exchange for its commitment. The state of New Mexico has pledged $10 million in Local Economic Development Act (LEDA) funding, while the city of Albuquerque will provide an additional $4.5 million.
The company has already produced some content in New Mexico, including the Emmy Award-winning series “Godless” and the Adam Sandler comedy film “The Ridiculous Six.”
Netflix has emphasized spending on original content in recent years as it looks to stoke global subscriber growth amid tough competition from other streaming services. The company is expected to spend $13 billion on original productions in 2018 alone.