Netflix shares fall as TV streaming service buys production hub in New Mexico

Netflix shares closed lower Monday, amid news the TV streaming service announced the purchase of its first production hub.

Netflix shares fall as TV streaming service buys production hub in New Mexico

Netflix shares fell in the US Monday, amid news the TV streaming service plans to purchase its first production studio. The deal will see Netflix film and produce some of its Originals in the studio and around the state of New Mexico, where it is based.

Netflix shares ended the US Monday trading session 0.64% lower at $349.10. The stock is also currently in the red, pre-market.

Netflix production studio purchase

Netflix said Monday, that it is in the process of buying its first production studio complex, from ABQ Studios, in Albequerque.

Upon completion of the deal, the TV streaming service will invest some $1 billion in production over the next ten years and create up to 1,000 production jobs, per year, relating to its work across the state of New Mexico.

“Our experience producing shows and films in New Mexico inspired us to jump at the chance to establish a new production hub here,” said Netflix VP of Physical Production, Ty Warren.

“The people, the landscape and the facilities are all stellar and we can’t wait to get to work -- and employ lots of New Mexicans -- creating entertainment for the world to enjoy,” Warren added.

Netflix buys the rights to ‘The Circle’

Netflix also announced Monday that it had purchased the rights to the UK’s latest social media related, unscripted TV success, ‘The Circle’.

It’s a new reality TV/popularity contest show, that first aired in the UK in September. It has proved popular so far and Netflix plans to develop three local versions of it for its global audience, including one for the US.

“The Circle has already proven to be a compelling, timely, and buzzworthy show,” said Brandon Riegg, Netflix VP of Unscripted Content.

“We think the show’s combination of modern social media interaction and competition will captivate Netflix members around the world, in multiple languages, and we’re delighted to partner with Studio Lambert and Motion to produce these three new local versions,” Riegg added.

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