Netflix continues to pull top talent from traditional Hollywood players with their latest signing.
Ryan Murphy has produced several hits including:
3) American Crime Story: The People vs. O. J. Simpson
4) American Horror Story
The 5-year deal is worth $300M!
The big question. Is Netflix smart in spending big $ to hire the talent who created the hit franchises rather than overspending for the franchises themselves?
Shonda Rhimes has produced several hits including:
2) Grey’s Anatomy
Revenue from Rhimes shows has generated an estimated $2B in revenue from advertising, rerun sales and international licensing.
Viacom is launching an ad-supported competitor to Netflix to showcase networks such as MTV and Comedy Central.
Why is there a need for ad-supported streaming? The average Netflix user avoids 12K+ TV ads every year that they would have viewed if they were spending that time with traditional TV.
The estimates range from $3 — $6B in annual lost revenue from this shift!