Speaking at the Tres Cantos Madrid hub on Tuesday, Netflix’s (NFLX) co-CEO Ted Sarandos announced that the company would be investing more than 1 billion euros ($1.14 billion) in content production in Spain over the next four years. Sarandos made the statement at a press conference held to mark the streaming giant’s 10 years in Spain, which the co-CEO noted have been “nothing short of extraordinary.”
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Netflix Boosts Focus on International Business
Netflix’s decision to invest in Spain is a part of the company’s strategy to boost its international business and user engagement through local content production. The CEO highlighted that Spanish content garnered over 5 billion hours of viewing on Netflix in 2024. Citing Omdia estimates, a Variety report noted that this figure is the best when it comes to non-English production in Europe. Notable titles among Spanish content include Money Heist and Society of the Snow.
In fact, the figure is more than double the hours generated by French titles on Netflix. Interestingly, the streaming platform’s investment in French content stands at 250 million euros ($285.1 million), even though it has a subscriber base of 14.6 million in the country compared to 8.7 million in Spain (based on Omdia estimates).
Netflix’s international focus and investment in local content production are understandable, given that over 70% of its subscribers are located outside North America. For instance, the company has been experiencing robust traction for its Korean content. In 2023, Netflix committed to investing $2.5 billion in Korean content over a period of four years.
Is NFLX Stock a Buy, Sell, or Hold?
With 29 Buys and nine Holds, Wall Street has a Strong Buy consensus rating on Netflix stock. The average NFLX stock price target of $1,233.97 indicates that the stock is fully valued at current levels. NFLX stock has rallied more than 37% year-to-date, as the company continues to impress investors with solid financials.
