Netflix’s European business is growing, but the company says its future success will depend on balancing local investment rules with the creative freedom needed to produce distinctive stories.
Netflix’s revenue across Europe, the Middle East and Africa increased by 11% year on year in the third quarter of 2026, according to the company’s head of content for the region, Larry Tanz. Speaking to The Big Question, Tanz said regulation, investment obligations and cultural policy are increasingly important issues for global streaming platforms operating in Europe.
The discussion highlights a wider question in European media policy: how can governments support local film and television production without limiting the commercial and creative decisions that help productions reach audiences?
Netflix has expanded its European production operation
Netflix had no original European productions around 12 years ago. Since then, it has built regional teams across the continent to identify local stories, work with creative talent and understand audience preferences in individual markets.
The company says it has invested more than €13 billion in Europe over the past decade. It has also committed to investing a further €1 billion in Spain by 2028, underlining the importance of the country as a production centre for international streaming content.
Tanz moved to Amsterdam in 2019 to lead Netflix’s European operations. The company now has 10 regional teams working across Europe, reflecting its shift away from commissioning content solely from its US base.
Local stories can find international audiences
Netflix’s approach, as described by Tanz, is not to design every production as a global blockbuster. Instead, the platform aims to make programmes for clearly defined audiences and allow their distinctive cultural identity to remain central to the story.
That strategy can create international success without removing a production’s local character. Tanz pointed to Squid Game as an example of a series whose global appeal was closely connected to its Korean setting, style and perspective.
He also argued that successful international shows normally establish an audience in their home market before travelling abroad. Subtitles and dubbing have helped make such productions accessible, with Netflix offering content in more than 40 languages.
Non-English-language content accounted for less than 10% of total viewing on Netflix a decade ago. The company says it now represents more than one-third of viewing, illustrating the growing importance of productions made outside English-speaking markets.
Why European regulation matters to streaming platforms
European media regulation is designed to support cultural diversity, local production and the availability of European works. However, Tanz argued that some rules are outdated and may discourage risk-taking or make it harder for platforms to invest strategically.
His criticism reflects a recurring debate in EU policy discussions. Regulators want global platforms to contribute to Europe’s creative industries, while companies argue that rigid requirements can reduce flexibility and direct funding towards projects that may not attract viewers.
Tanz called for consistent incentives that encourage investment while preserving creators’ ability to develop original stories. He warned that obligations based too narrowly on spending targets could result in productions that receive funding but struggle to find an audience.
His comments are a company perspective rather than a change to European law. Existing obligations and national measures continue to apply according to the rules in each relevant market.
The policy challenge for Europe
European governments and EU institutions face a difficult balance between cultural policy and a rapidly changing media market. Support for local content can:
- create work for writers, directors, performers and production crews;
- strengthen national and regional creative industries;
- preserve stories and languages that might otherwise receive less commercial attention; and
- help European productions compete in a global streaming market.
At the same time, streaming companies want freedom to decide which projects to commission, how much to spend and how to distribute content. The commercial risk is particularly significant because film and television projects can take years to develop, produce and release.
What Netflix’s position means for European media policy
The debate is likely to continue as streaming services become more important distributors of European films and television programmes. Platforms are no longer simply importing US content; they are commissioning productions in countries including Spain and developing teams that work directly with local creators.
For policymakers, the central issue is not whether European content should be supported. There is broad value in maintaining a strong audiovisual sector. The question is how support can be structured so that it encourages quality, diversity and audience reach without dictating creative outcomes.
For producers and creators, the expansion of streaming investment offers new opportunities but also creates dependence on a small number of powerful platforms. Decisions made by those platforms can influence which languages, genres and stories receive international exposure.
What happens next?
Netflix’s European growth is likely to keep the company involved in discussions about audiovisual regulation, cultural investment and the future of digital media. Any changes to EU or national rules would require action through the relevant legislative or regulatory processes; Tanz’s comments do not themselves alter existing obligations.
The company’s performance also suggests that local production and international reach are not necessarily competing goals. A story rooted in one country can attract audiences elsewhere when it is made with a clear identity and supported by effective translation and distribution.
Netflix’s experience presents a clear takeaway for Europe’s media debate: investment matters, but so do audience connection and creative independence. The challenge for regulators is to support European production without making the rules so rigid that they undermine the experimentation that makes distinctive content successful.