Netflix (NFLX - Free Report) recently announced plans to open a production hub in Albuquerque, New Mexico.
The company is close to finalizing a deal to purchase ABQ Studios in Albuquerque, currently owned by Pacifica Ventures. Notably, some blockbusters filmed at ABQ Studios include The Avengers, Sicario, Breaking Bad and The Lone Ranger.
Following the completion of the acquisition, Netflix is expected to create up to 1000 production jobs and bring $1 billion in production money to Albuquerque over a span of 10 years.
Apart from this, the company also established a production hub in Madrid, Spain on July 2018.
Productions Scheduled in New Mexico
Netflix’s current productions in Albuquerque — Chambers and Messiah — have provided jobs to more than 700 local crew members.
Additionally, post the deal, the company’s other film and television series, including Daybreak, will be produced in the new facility along with other locations in the state. Earlier productions in New Mexico include Longmire, The Ridiculous Six and Emmy award-winning series Godless.
Notably, to boost the economic situation of the country, the state of New Mexico and the city of Albuquerque will extend funds through the Local Economic Development Act (LEDA). While the state will provide up to $10 million, the city will provide up to $4.5 million.
This depicts Netflix’s ability to create value not just for the company but for all the stakeholders involved, which is a positive for the stock. The stock has gained 81.8% in the year-to-date period compared to the industry’s rally of 28.4%.
We believe that Netflix has a first mover advantage with investments in both content and production facilities.
Moreover, growth in the company’s 130 million global subscribers despite increase in Netflix average selling price (ASP) reflects the strength of the company’s Emmy award-winning content.
Netflix, Inc. Revenue (TTM)