Netflix says it's going to produce a lot more original content in the U.K. after taking out a long term lease on facilities at the famous Shepperton Film Studios near London. 

The video streaming company has reportedly signed a 10-year agreement to use the studios, which will see it take up to 435,000 square feet of production space. 

The BBC reports that Netflix intends to create what it calls a “dedicated U.K. production hub” that will be comprised of 14 sound stages and workshops plus office space at the studio, which is owned by Pinewood Group. 

Shepperton Film Studios was previously used to film blockbuster movies such as Gladiator and 2001: A Space Odyssey, among others. 

Netflix has already started filming its first movie at the studio, a new action film called The Old Guard that stars Charlize Theron. 

Netflix has a long history of creating both original titles and co-productions in the U.K., with some of its most well known shows including The Crown, which was filmed at Elstree Studios in Hertfordshire, Outlaw King, which was shot in Scotland, and Sex Education, which was filmed in Wales. 

Netflix Chief Content Officer Ted Sarandos told the BBC that Shepperton Film Studios has been synonymous with world class film for almost half a century. 

“We're incredibly proud to be part of that heritage," Sarando said. "This investment will ensure that British creators and producers have first rate production facilities and a world stage for their work.” 

The BBC’s media editor Amol Rajan said the deal would have positive implications for the U.K.’s creative industry too , which has already outpaced much of the rest of the country’s economy. He noted that there’s a significant shortage of studio space in the U.K., which was probably why Netflix was so keen to tie up this deal. Although this means smaller production companies might struggle in the short-term to find space, ultimately it should lead to greater investment in Britain’s film studio infrastructure once politicians take note. 

“In the meantime, the marriage of Netflix and Shepperton - one of the most storied names in all cinema - shows that when the best of the new and the best of the old come together, Britain is the location,” Rajan said.