Netflix NFLX isn't just producing binge-worthy series — it's quietly become a heavyweight in the U.S. economy. Speaking at Semafor's World Economy Summit late last month, co-CEO Ted Sarandos said, "Netflix alone, I think, from 2020 through 2024 contributed $125 billion to the U.S. economy."
"People forget this is a real business," Sarandos emphasized, highlighting the entertainment sector’s overlooked economic clout in trade talks and federal policy.
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140,000 Jobs, 50 States, One Giant Footprint
According to Netflix's official blog, the $125 billion impact included over 900 productions and 140,000 jobs across all 50 states during those four years. The platform's physical presence is just as robust — with 9,000 U.S.-based employees and five million square feet of office and studio space, most of it anchored in California.
Despite these numbers, Sarandos told Semafor the industry is often left out of national economic strategy. "You hardly ever see a sitting president photographed on a studio lot," he said, alluding to the manufacturing-first spotlight in policy talks.
Netflix Invests $1 Billion South of the Border
During a Feb. 20 event with Mexican President Claudia Sheinbaum, Sarandos announced a $1 billion investment plan aimed at expanding the company's production capabilities in Mexico over the next four years, according to multiple media reports.
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Reuters reported that Netflix will produce around 20 films and TV series annually in Mexico over the next four years, a move expected to boost local employment and strengthen its collaboration with Mexico City’s historic Churubusco Studios.
Sarandos also compared the investment in Mexico to major manufacturing expansions. "If we were building a plant to build a billion dollars worth of cars there, the president would certainly announce that," he said.
The investment also taps into adjacent industries — fashion, tourism, and hospitality — further reinforcing Netflix’s goal to embed itself into Mexico's broader creative economy. As Wired highlighted, it's a model designed to grow local ecosystems alongside content pipelines.
Why Netflix Walked Away From China
Netflix once tried cracking the Chinese market with a 2017 licensing deal through iQiyi IQ, a domestic streaming platform. However, Sarandos said during the Semafor summit that "not a single episode of a single Netflix show cleared" the government's censorship board over three years.
The attempt was eventually scrapped — a move that accidentally future-proofed Netflix from exposure as U.S.-China trade tensions escalated. The licensing strategy had potential but never got past regulatory barriers.
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Netflix is now one of the few major U.S. entertainment companies with no operational risk tied to China — a significant detail as Beijing recently reduced film imports in retaliation to the Trump administration's 145% tariff on Chinese goods.
Netflix House And The $1 Trillion Vision
As Netflix eyes a market cap target of $1 trillion by 2030, Sarandos stressed that the growth focus remains within its core business.
"The things that we do are just $650 billion in consumer spending," Serandos said at the Semafor summit. "We’re about 5% of that now and about 10% of total TV watching time in our most penetrated, most mature markets."
While theme parks aren't in the immediate future, Netflix will debut two massive "Netflix House" locations this year — one in Dallas, the other in King of Prussia, Pennsylvania. These 100,000-square-foot experiences will blend themed dining, shopping, and immersive activities tied to hit shows like "Bridgerton" the company said last June.
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