Netflix has locked down a major production contract with Shonda Rhimes, the prolific TV screenwriter and producer behind ABC network hits such as “Grey’s Anatomy” and “Scandal.”
The Wall Street Journal first reported the arrangement early Monday morning, noting that Ms. Rhimes’ production company, ShondaLand, will now operate under the streaming TV service’s auspices.
“We have continued to move up the food chain in terms of getting into the creation of content earlier,” said Netflix Chief Content Officer Ted Sarandos in an interview, the Journal reported.
Netflix’s poaching of Ms. Rimes’ firm from Disney-owned ABC could be seen as another “twist” in a budding rivalry between the two companies, the Journal said, coming as it did on the heels of Disney’s announcement that it’s developing its own over-the-top (OTT) streaming app Disney studio content, including the corporation’s archive of popular animated films.
The acquisition of Ms. Rhimes’ firm is just the latest in a string of high-profile gets for the Los Gatos, Calif.-based company, but it appears to have no positive impact on Wall Street. Netflix shares are trading slightly down as of this writing, as analysts have raised concerns that the company is unwisely burning loads of cash in a risky strategy that may not pay off in the long run.
• Ken Shepherd can be reached at kshepherd@washingtontimes.com.
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