The UK has been home to a number of high-profile Netflix streaming successes in recent years. For this reason, Netflix is planning to triple its UK offices in a long-term investment.
Netflix invests in the UK
The streaming giant will move to the Copyright Building in London's West End, increasing the company's office space to nearly 10.000 square meters and adding to its already large presence in the city an office of around 2.000 square meters near Oxford Circus.
The UK has been home to a number of hits for Netflix (NASDAQ: NFLX) in recent years, with British production series such as "Sex Education" and "The Crown" winning audiences globally.
"As part of our ongoing commitment to the UK, we are thrilled to expand our operations in London by leasing additional office space," Netflix said.
"This will ensure that we can better serve our members and the local creative community, and invest in stories like 'The Crown', 'Sex Education', 'Rebecca' and 'Too Hot To Handle', made in the UK and appreciated. from the world. "
“The Crown” garnered critical acclaim for its portrayal of Queen Elizabeth II and the royal family, taking home three Golden Globes and three Emmys since 2017, as well as garnering dozens of other nominations and awards.
“The UK is a relatively efficient market for Netflix to expand because audiences' preferences for content are more similar to those of the company's North American audience,” said Third Bridge analyst Daniel Thomas. "In theory, spending on original content can be amortized over a broader subscriber base."
Netflix isn't the only one looking to the UK
The Silicon Valley company employs 269 people in the UK, where it made over 50 productions last year. This expansion marks a long-term investment in the British creative economy and is expected to create jobs both in front of and behind the camera.
Thomas noted that "if Netflix starts spending large sums on original content for its UK audiences, it could make it more difficult for traditional broadcasters to acquire talent, scriptwriters and stage space for their own programming."
Netflix is the latest US tech company to make a major UK expansion with offices in London. Facebook (Facebook shares - NASDAQ: FB) and Amazon (Amazon shares - NASDAQ: AMZN) have signed big real estate deals in the city in recent years, while Google Alphabet and Apple are set to move to huge new locations in London next year. Shares of Netflix have risen 64% since the beginning of the year.
Even as the production of new shows and movies was halted by the lockdown, the streaming company has emerged as one of the corporate success stories of the coronavirus pandemic era. With millions of people forced into their homes by the lockdown, registrations have increased.
