Netflix to Invest Over $1.2 Billion in Spain Over 2025-28

Netflix announced Tuesday that it will invest over €1 billion ($1.14 billion) in Spain over 2025-28. 

The commitment was made by Ted Sarandos, Netflix co-CEO, whose wide-ranging if brief speech at a press presentation Tuesday in Spain, held to mark Netflix’s first 10 years in the country. 

Sarandos was accompanied by Diego Ávalos, Netflix VP of content, Spain, Portugal & Turkey, and Spanish Prime Minister Pedro Sanchez whose Spain Audiovisual Plan has channelled some €1.6 billion ($1.8 billion) into the sector.  

The speech delivered by Sarandos covered Netflix’s achievements in Spain and key drivers to success, while praising Spanish “regulations that encourage creativity, innovative and long-term thinking”  – an implicit slap on the wrists to other countries, such as France, where Netflix lodged in April an appeal with the country’s Council of State lambasting its windowing rules as the European Union debates possibly tougher quotas on streaming services.

The $1.2 billion investment is an example of how Netflix and a local industry can benefit if the streaming service works hand in hand with a government. 

Sarandos’ focus in his speech was on what has gone right in Spain over the last 10 years, however, rather than Netflix’s legal tussle in France.

In Spain, Sarandos spoke at the U.S. streaming giant’s “world-class” European Production hub, he said, in Tres Cantos, a half hour’s drive north of Madrid where Netflix has built its biggest, 10 soundstage studio complex in Europe.

“Alongside your rich cultural heritage, vibrant entertainment industry and brilliant creative talent, Spain is also a great place to do business,” Sarandos told an audience of high-ranking politicians, creatives and industry honchos. 

“All of that has inspired us to establish our beautiful home here in Tres Cantos – a symbol of our deep, sustained commitment to Spain,” he added.

The over €1 billion ($1.2 billion) investment now promised for Spain ranks on a broad par with France where investment in French series, movies and documentaries now stands at an annual €250 million ($285.1 million), Netflix VP of content in France, Pauline Dauvin said in April.

The Spanish investment commitment comes, moreover, despite Netflix having in Spain a subscriber base of 8.7 million clients, versus France’s 14.6 million, Omdia estimates.         

The explanation for Spain’s punching way above its weight can be found in the fact that for Netflix Spain, in so many ways, “the last 10 years have been nothing short of extraordinary,” Sarandos’ said Tuesday.

Led by “Money Heist” seasons and “Society of the Snow,” Spain has scored more entries in Netflix’s Top 10s of most-viewed non-English language shows and movies ever – a total eight – than any other country in the world, beating France (5), South Korea (2), Mexico (2) and Norway (2) and Germany (1).

“Last year alone, Spanish titles generated over 5 billion hours of viewing on Netflix,” Sarandos said. That global figure is the best of any non-English production powerhouse in Europe, doubling hours for French and German titles, Omdia estimates. 

In an introduction to the whole presentation on Tuesday, Ávalos, recognized that “content ‘made in Spain’ is among the most popular in the world, alongside the Korean and Japanese. Phenomena like ‘Money Heist,’ ‘Cable Girls,’ ‘Society of the Snow,’ ‘Through My Window’ and ‘I’m Georgina’ demonstrate that.”

Much of Sarandos’ speech was dedicated to explaining Spain’s spectacular success.   

“I have been to many iconic stages all around the world – and the facilities here are second to none. 22,000 square meters . 10 outstanding sound stages. A world-class post-production facility. A seamless experience,” he said.

“Some of the biggest creators in Spain have shot some of our most beloved titles here: J.A. Bayona’s ‘Society of the Snow’ – which went on to win 12 Goya awards and went all the ways to the Oscars; Netflix’s longest running series ever, Spanish or international, ’Elite’ from Carlos Montero; and ‘Money Heist,’ ‘Berlin’ and the upcoming ‘Billionaires’ Bunker’ from Alex Pina and Esther Martínez Lobato,” said Sarandos,

Tres Cantos’ Production Hub was the first in Spain to introduce HDR imaging, Atmos Dolby surround sound, post-production workflows. “Billionaires’ Bunker” used a 30×6 meter virtual screen and an 8×4 meters ceiling screen. The Hub has begun to address technological solutions before, not after, Hollywood. 

“We have a huge audience that’s estimated to be more than 700 million people, with over two-thirds of them living outside the U.S,” Netflix announced in first quarter results this April. “To grow around the world and to delight and satisfy such a large and diverse audience, our strategy is to continuously improve and expand our entertainment offering, starting with great shows and movies from across the globe which first and foremost appeal directly to local audiences because we believe they want to see authentic stories,” it added.

Spain is a case in point. Sarandos noted at the beginning of his speech that Netflix had brought more than 1,000 Spanish titles since 2017 to members in or outside Spain which have come from all sides of Spain.

Such shoots range “from our very first Spanish original series, ‘Cable Girls,’ shot right here on the streets of Madrid, to ’The Snow Girl’ in Andalusia. ‘Nowhere,’ filmed on the beaches of Sitges and ‘All The Truth Behind My Lies’ is shooting right now in Murcia,” Sarandos noted.

Netflix has filmed in over 200 cities and towns across every autonomous community in Spain – the country’s regions.

“This has brought to the screen all the different sides of Spain. It has led to real economic benefits in communities across the country. And it has helped support more than 20,000 jobs in the Spanish audiovisual sector,” Sarandos said. 

Ávalos noted that Netflix has worked with over 60 local production houses, such as Bambú, Bowfinger, Brutal, Contubernio, DLO, El Desorden Crea, Fonte Films, Komodo, MOD, Pokeepsie, Suspense and Vaca, which were all at Tuesday’s presentation. 

Netflix has also brought Spain to the world. On Dec. 20, 2017, Netflix released worldwide in a reformatted version its fifth non-English language series, Spain’s “Money Heist.” The series went viral, becoming Netflix’s first non-English language global blockbuster. 

What’s groundbreaking about “Money Heist” is that a global blockbuster could be so rampantly “local”: Latin and proud of it – part melodrama, sluiced by disruptive passion – and redolently Spanish Spanish-language. 

From “Dali masks, red jumpsuits, Bella Ciao – all of them have become instantly recognisable parts of the global culture,” said Sarandos.

“The reason these films and series resonate is clear – they are all, in their own way, authentically Spanish. Made in Spain by Spanish producers, Spanish creators, Spanish cast, Spanish crews. And all made for Spanish audiences” he added.

“From Dalí masks and red jumpsuits to ‘Bella Ciao,’ these Spanish shows have become global cultural phenomena. The reason they resonate is clear – they are all, in their own way, authentically Spanish. Made in Spain by Spanish creators with Spanish cast and crews and,” Sarandos enthused in Madrid.

With “Money Heist,” Netflix’s revolutionary business model – distributing and producing worldwide at an unprecedented scale – took one large leap towards the future.