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Netflix bucks industry trends, will invest in California productions




Miami, UNITED STATES:  A Netflix return mailer is pictured in Miami, Florida 16 January 2007. Netflix annouced it will start showing movies and TV episodes over the Internet, providing its subscribers with instant gratification as the DVD-by-mail service prepares for a technology shift that threatens the company's survival.   AFP PHOTO/Robert SULLIVAN  (Photo credit should read ROBERT SULLIVAN/AFP/Getty Images)
Miami, UNITED STATES: A Netflix return mailer is pictured in Miami, Florida 16 January 2007. Netflix annouced it will start showing movies and TV episodes over the Internet, providing its subscribers with instant gratification as the DVD-by-mail service prepares for a technology shift that threatens the company's survival. AFP PHOTO/Robert SULLIVAN (Photo credit should read ROBERT SULLIVAN/AFP/Getty Images)
ROBERT SULLIVAN/AFP/Getty Images

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The business of making film and television is a vital part of California's economy.

But over the past couple of decades, Hollywood's claim to being the film and TV production capital has been challenged by so-called runaway production.

Studios routinely film in places like New York, Georgia and even Canada to earn lucrative tax breaks that the Golden State hasn't been able to match.

So there was some general rejoicing when Netflix announced that not only does it believe in California productions, but it is planning to invest billions to support them.

Sharon Waxman is the founder of the entertainment publication The Wrap. She's been writing there about her conversation with Netflix's CEO about the decision.

To hear the full conversation, click the blue player above.