Netflix unveils plans to build film studio in New Jersey

Netflix is doubling down on its content production capabilities in New Jersey, announcing this week it’s investing $848 million to develop a production facility at Fort Monmouth.

According to Netflix and New Jersey Governor Phil Murphy, the company will develop the 292-acre parcel to eventually create more than 1,500 permanent production jobs and more than 3,500 construction jobs in the state.

Netflix received the project greenlight on Wednesday from the Fort Monmouth Economic Revitalization Authority (FMERA), and is now in a due diligence period while it awaits the necessary local approvals. The company is to pay $55 million for the lot itself, including a utility contribution of $5 million and a FMERA office relocation fee of $3 million.

“We're thrilled to continue and expand our significant investment in New Jersey and North America,” stated Netflix Co-CEO and Chief Content Officer Ted Sarandos. “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.”

Over the course of several years, Netflix plans to construct 12 soundstages for the facility as well as other areas to support film production, such as studio backlots, office space and production service buildings.

“This transformative investment will serve as a cornerstone in our efforts to create a thriving industry from whole cloth,” said Murphy in a statement, adding Netflix’s efforts will help New Jersey “further solidify its status as an emerging national leader in the television and film industries.”

Though it’s too soon to say which films Netflix intends to produce at the studio, the company of late has strived for more impactful content spend. Speaking at an investor conference this month, Sarandos said Netflix has allocated around $17 billion for its content spending budget – an amount geared towards both U.S.-produced content and content that’s produced abroad.

Some of those funds are likely dedicated to building up Netflix’s handful of growing franchises. Netflix and “Stranger Things” co-creators the Duffer Brothers launched this summer a production studio that will focus on creating spin-offs for the “Stranger Things” series, among other titles. Netflix is also considering a franchise for its spy thriller feature film, “The Gray Man.”

Netflix’s production ambitions aren’t limited to TV and movies, as the streamer in September announced it’s establishing its own video game studio in Finland – a move that came after Netflix completed a series of gaming-related acquisitions.