👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereNetflix co-CEO Ted Sarandos announced that the streaming service will invest more than €1 billion (US$1.14 billion) in Spain from 2025 to 2028.This announcement occurred during the company’s 10th anniversary event in Spain, held at its production hub in Tres Cantos, Madrid.The Tres Cantos facility, which opened in 2019, is Netflix’s largest filming site in the European Union.The event featured attendees including President of the Spanish government Pedro Sánchez and Minister for digital transformation and public service Óscar López.Netflix’s announcement reflects its commitment to Spain as a center for production and storytelling.🔗 Source: Netflix🧠 Food for thought1️⃣ Spain’s emergence as Europe’s content powerhouseNetflix’s billion-euro investment builds upon Spain’s remarkable rise in the global streaming landscape over the past decade.When Netflix first entered Spain in 2015, the country wasn’t considered a major production hub, but by 2019, Netflix had already established its first European production center in Madrid 1.This latest investment continues a strategic pattern, as Spain now produces Netflix’s most viewed non-English language content globally, outperforming other major European markets 2.The Tres Cantos facility has evolved from having just three soundstages in 2019 to becoming Netflix’s largest EU production hub with ten advanced stages and post-production facilities 3.Spanish series have consistently broken through internationally, with “Elite” becoming Netflix’s longest-running international series ever, and “Money Heist” turning elements like Dali masks and red jumpsuits into globally recognized cultural symbols 4.2️⃣ Local authenticity driving global appealThe success of Spanish content demonstrates how Netflix’s investment in cultural authenticity creates global appeal rather than diluting local storytelling.Spanish titles generated over 5 billion viewing hours on Netflix last year alone, showing that authentically local stories can achieve massive international viewership 4.This performance validates Netflix’s strategy of deep investment in regional stories rather than producing generically “international” content, with Sarandos specifically highlighting that these productions succeed because they are “authentically Spanish” 2.Netflix has deliberately filmed across 200+ cities and towns in every autonomous community in Spain, showcasing the country’s diverse landscapes and cultural identities rather than relying on a few familiar locations 3.3️⃣ Regulatory environment as competitive advantageSpain’s favorable regulatory framework for production has become a key competitive advantage in attracting streaming investment.In his announcement, Sarandos specifically praised Spain for “regulations that encourage creativity, innovation, and long-term thinking” 4, directly contrasting this with challenges Netflix faces in markets like France 2.This regulatory advantage has positioned Spain ahead of other European production markets despite France and Germany having larger overall economies.The supportive business environment has enabled Netflix to expand its physical production infrastructure in Spain more extensively than elsewhere in the EU, creating a virtuous cycle of investment, talent development, and production capacity 5.Spain’s approach demonstrates how government policy can significantly influence where streaming platforms concentrate their European investments, with implications for other countries seeking to attract similar financial commitments 3

👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereSoutheast Asian ride-hailing and delivery company Grab has denied reports of discussions to acquire Indonesian rival GoTo.In a stock exchange filing on Monday, Grab stated, “The parties are not involved in any discussions at this time and Grab has not entered into any definitive agreements.”This announcement follows media reports about a potential US$7 billion acquisition of GoTo, with Indonesia’s sovereign wealth fund Danantara said to be considering a role in the deal.Stefanus Ade Hadiwidjaja, Danantara’s managing director of investments, also denied the claims.He told Indonesian media outlet Tempo that no discussions have occurred. Similarly, GoTo confirmed to the Jakarta bourse that no agreements have been made regarding a potential transaction.Grab reported a 19% growth in on-demand gross merchandise value and a 23% increase in mobility rides for April and May 2025 compared to the previous year.Speculation about a merger between Grab and GoTo has arisen periodically in recent years, although both companies have consistently denied any such plans.🔗 Source: Reuters🧠 Food for thought1️⃣ Southeast Asian super-app consolidation follows historical precedentThe on-again, off-again merger discussions between Grab and GoTo mirror similar consolidation patterns across Southeast Asia’s tech landscape.This marks the latest chapter in a multi-year competitive saga that began with aggressive regional expansion in 2018, when Go-Jek announced a $500 million investment to enter Vietnam, Thailand, Singapore, and the Philippines in direct response to Grab’s acquisition of Uber’s regional operations 1.Both companies have evolved far beyond ride-hailing into “super-apps” offering food delivery and payments, with Grab processing transactions worth $19 billion in 2024 while GoTo’s combined entities generated over $20 billion in gross transaction value 2.The financial pressures driving potential consolidation are clear: Grab reported a $158 million net loss in 2024 while GoTo lost $331 million that same year, highlighting how the “cash-burning war” for market share has challenged profitability for both companies 3.This reflects a recurring pattern in digital platform economics where markets eventually consolidate toward one or two dominant players after extended periods of subsidized competition.2️⃣ Regulatory scrutiny reflects Indonesia’s strategic tech prioritiesIndonesia’s regulatory response to the potential $7 billion merger reveals the country’s growing determination to protect its developing tech ecosystem.The Indonesian Competition Commission (KPPU) has expressed significant concerns about market concentration, particularly given estimates that a combined entity could control over 90% of Indonesia’s ride-hailing market in certain segments 4.Regulatory caution is heightened because Indonesia represents Grab’s largest market by population, with the company having expanded to 100 Indonesian cities by 2018 while investing heavily in local payment infrastructure 5.The potential involvement of Indonesia’s sovereign wealth fund Danantara in the deal structure signals how national interest concerns are becoming central to major tech transactions in the region 2.This regulatory approach reflects Indonesia’s broader strategy of maintaining local control and influence over key digital infrastructure while still allowing foreign investment and technological advancement.3️⃣ Driver interests highlight broader gig economy tensionsThe skepticism from drivers about structural changes to ride-hailing platforms demonstrates the precarious position of gig workers in evolving digital economies.As early as 2018, Indonesia’s Online Drivers Association actively opposed government attempts to reclassify ride-hailing services as public transportation, fearing it would undermine the partnership model between drivers and platforms 6.These concerns persist today as any Grab-GoTo merger would likely lead to service integration, potentially reducing driver leverage and altering compensation structures across the combined platform 7.Driver resistance reflects the fundamental tension in the gig economy between platform efficiency (which often means reducing driver costs) and sustainable livelihoods for workers who provide the actual services.This represents a critical challenge for emerging economies like Indonesia, where ride-hailing has created flexible income opportunities for hundreds of thousands of workers who now face uncertainty as the sector matures and consolidates.Recent Grab developments