• by Karlene Lukovitz  @KLmarketdaily, December 27, 2022

A Netflix proposal to build a massive East Coast production facility has emerged the winner in a bidding process to acquire a 292-acre former army base site in Fort Monmouth, New Jersey, about 50 miles south of New York City.

Netflix’s proposal calls for paying $55 million for the lot, building 12 state-of-the art soundstages spanning nearly 500,000 square feet, supporting facilities and “community amenities” through a capital investment of $848 million, and creating more than 1,500 permanent jobs.

Netflix, which first revealed its interest in bidding on the site back in October 2021, was selected over three other bidders evaluated by the Fort Monmouth Economic Revitalization Authority (FMERA), according to an announcement from the company and New Jersey Governor Phil Murphy.

FMERA ultimately issued a request for offers to purchase in March 2022, with a deadline of June 6.

Netflix’s proposal is now in a due diligence period that includes a local approvals process.

“As a result of nearly a billion dollars in film production spending, New Jersey will further solidify its status as an emerging national leader in the television and film industries,” stated Murphy. “Additionally, Netflix’s substantial direct investment will stimulate job creation and spark an entirely new ecosystem of housing, hotels, and ancillary businesses and services, bringing with it countless additional jobs and boosting the regional economy.”

“We believe a Netflix studio can boost the local and state economy with thousands of new jobs and billions in economic output, while sparking a vibrant production ecosystem in New Jersey," said Ted Sarandos, Netflix co-CEO and chief content officer.

Netflix owns or leases production facilities around the world, including one it opened in New York earlier this year. However, unlike most large entertainment companies, it does not have a major facility in Los Angeles.

With competition from Disney+ and other majors heightening, Sarandos announced this month that Netflix will invest about $17 billion in content produced in the U.S. and other countries for 2023, with a focus on local content with universal appeal.

Netflix is also accelerating its push into gaming content offered as a perk for its subscribers. In September, the company — which had mostly focused on gaming development through acquisitions and partnerships — announced it is creating a gaming studio in Helnsinki, Finland. In October, TechCrunch reported that Netflix will open a gaming studio in Southern California, and the company recently acknowledged that it is pursuing a cloud gaming offering.