iWorld
Netflix commits a billion dollar investment in Mexico’s entertainment sector
MUMBAI: President Trump wants immigrants from across the border out of the US. Where they go is none of his business. Netflix, on its part is clear where it is headed – to Mexico , where Trump wants the illegals to head.
Yesterday, the streamer announced that it is going to be pumping in a billion dollars over the next four years into making entertainment content in the country.
Ted Sarandos, the streaming giant’s co-chief executive, made the announcement alongside president Claudia Sheinbaum in Mexico City yesterday. The investment marks a significant expansion of Netflix’s presence in Latin America’s second-largest economy.
The commitment aims to bolster local production companies and stimulate growth across Mexico’s audiovisual sector. Beyond film and television production, the investment is expected to create ripple effects in adjacent industries, from catering and hospitality to traditional craftsmanship.
Mexican content has proven particularly successful for Netflix’s global audience. The streaming service has already produced hundreds of shows and films in the country, many achieving international acclaim. The new investment signals Netflix’s confidence in Mexico’s creative talent pool and its potential to generate content with worldwide appeal.
The move comes as streaming platforms increasingly focus on local content production to differentiate their offerings and capture regional audiences. For Mexico, the investment represents a significant boost to its creative industries, potentially establishing the country as a leading hub for Spanish-language content production in the Americas.
iWorld
Universal Music to sell half its Spotify stake, expand buyback plan
Ackman pressure mounts as label posts €2.9bn revenue and strong subscription growth
HILVERSUM: Universal Music Group has unveiled plans to sell half of its stake in Spotify and double its share buyback programme to €1 billion, signalling a sharper capital strategy as investor scrutiny intensifies.
The company said it will launch an additional €500 million buyback after completing the €500 million programme announced in March, taking the total authorisation to €1 billion. Proceeds from the Spotify stake sale will help fund the buyback and will also be shared with artists, in line with long-standing commitments.
The move comes amid pressure from billionaire investor Bill Ackman, whose firm Pershing Square Capital Management holds over 4.5 per cent of UMG. Ackman recently made an unsolicited offer valuing the company at around $64 billion to $65 billion and has argued that the label’s shares are undervalued.
As part of his proposal, Ackman suggested selling the entire Spotify stake to raise €1.5 billion after taxes and artist payouts, while also pushing for a US listing and changes to the company’s financial reporting structure. UMG’s board has instead opted to move independently, approving a partial stake sale on its own terms.
The decision also aligns with what is informally known as the “Taylor Swift clause”, a commitment made when Taylor Swift re-signed with the label in 2018, ensuring that any proceeds from Spotify stake sales are shared with artists on a non-recoupable basis.
With investor pressure building and strategic levers now in motion, UMG appears to be striking a careful balance between rewarding shareholders and reinforcing its long-term growth play in the streaming era.
