Netflix Makes Mexico Its Latin American Capital

Fifteen years ago, Netflix launched in Mexico with nothing but a streaming license and a bet. On Tuesday, co-CEO Greg Peters inaugurated 8,500 square meters of new office space in Mexico City — not a branch, but the company’s headquarters for all of Latin America. Economy Minister Marcelo Ebrard attended alongside Francisco Ramos, Netflix’s vice president of content for the region. For the world’s largest streamer, Latin America now runs through Mexico.

The timing was deliberate. Days earlier, President Claudia Sheinbaum stood alongside actress Salma Hayek to unveil Mexico‘s first national audiovisual production incentive — a 30% income tax credit on eligible spending, capped at 40 million pesos ($2.3 million) per project. Productions must source at least 70% of goods and services domestically. The government also proposed a new Federal Film Law to replace legislation from 1992, including a 10% exhibition quota for Mexican films in theaters and protections for voice actors against unauthorized AI use.

A billion-dollar footprint

Netflix’s commitment is already deep. Last February, co-CEO Ted Sarandos pledged $1 billion in Mexican production between 2025 and 2028, plus $2 million to upgrade the iconic Churubusco Studios, a cornerstone of Mexican cinema since the 1940s. The local workforce has grown tenfold since 2019 — from 30 employees to nearly 400 — with a further 15% expansion planned this year. Between 2021 and 2023, Netflix filmed in over 50 cities across 25 of Mexico’s 31 states.

Mexico had been the glaring exception in Latin America’s production incentive race. Colombia offers up to 40% rebates through its Film Fund, Ecuador returns 37%, and even smaller markets like Uruguay had programs in place. Productions were migrating — Netflix’s own reality show La Ley de la Selva filmed in Colombia instead of Mexico. The new tax credit aims to stop the bleeding. For Netflix, with 53.3 million Latin American subscribers generating roughly $8 in average monthly revenue — less than half the North American rate — local production is the path to deeper engagement. Peters reminded journalists that Mexico produced Netflix’s first original series outside the United States a decade ago: Club de Cuervos. What began as an experiment is now infrastructure, and the government just handed it a tax break. This is part of The Rio Times’ daily coverage of Mexico affairs and Latin American financial news.