I think you missed a point. It might be harder to sell Americans on films shot in Mexico because the filming location will not pass as US. So they likely cann

I think you missed a point. It might be harder to sell Americans on films shot in Mexico because the filming location will not pass as US. So they likely cannot move projects targeting US audiences to Mexico. However, films targeting Latin + South America audiences might do really well if filmed in Mexico. So the expansion is probably mostly about catering to that market. To be honest, I don't envy Netflix's position. They release a show, it's culturally relevant for 2-8 weeks, and then they have to release another show to keep the subscriptions active. Traditional television has weekly releases that maintained relevance longer. Movies generate much more revenue per hour on content in theaters, and have long term licensing revenue. Their P/E ratio is higher than other content companies that offer similar streaming services, so shareholders expect revenue growth but their developed world marketshare doesn't have room for growth. So now they are going after new audiences, but they are targeting markets where their subscription fees are way lower, and they'll be on the same hamster wheel of keeping audiences engaged.