Netflix heats up battle for Hollywood talent (NFLX)

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Netflix has poached prolific US TV producer Ryan Murphy from 21st Century Fox in a deal worth up to $300 million, making it one of the biggest TV production deals ever signed,the Financial Timesreports.

Murphy will begin creating content exclusively for Netflix in July, and the series he created at 21st Century Fox, including "American Horror Story" and "Feud," will remain on the company’s networks. The deal will deepen the existing relationship between Netflix and Murphy, who previouslysigneda deal to executively produce a Netflix series in February 2017.

Fox bid aggressively to retain Murphy, but the producer's decision to move to Netflix makes sense for two key reasons:

Murphy's dodging the uncertainty surrounding the Disney-Fox acquisition.
acquisition
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He's gaining the creative freedom that comes with producing for a video streaming service.
known
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The deal is representative of the intensifying battle between digital video services and traditional media companies for top Hollywood talent. In addition to Fox’s bid, Amazon also made a serious bid for the top Hollywood producer, according to The New York Times. Video streaming services like Netflix and Amazon are aggressively pursuing top creators and entertainers as eyeballs shift away from linear TV in favor of digital platforms.

Netflix has been successful in luring top Hollywood talent in the past year. The company poached accomplished producers Shonda Rhimes and Betsy Beers from ABC in August 2017. Additionally, Netflix has been able to sign separate deals with former Late Show host David Letterman, and big-name stand-up comedians Chris Rock, Dave Chappelle, and Amy Schumer. Netflix plans to spend up to $8 billion on original content in 2018, up from $6 billion in 2017, and its budget eclipses those of rivals like Amazon and Hulu, positioning Netflix well to continue to court top Hollywood talent.

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