Netflix is falling despite announcing a content deal with Shonda Rhimes
Netflix is down 0.68% in premarket trading on Monday despite news its continuing to add content partners to beef up its offerings to and ward off the competition.
Shonda Rhimes, the mind behind hit shows "Greys Anatomy," "How to Get Away With Murder," and "Scandal" has agreed to move future shows to Netflix.
Those existing shows will continue to run on ABC in the US, and Rhimes will continue to work on them, according to a release.
Rhimes has had a close relationship with Netflix in the past, as many of her shows appear on the service after airing on ABC.
According to Rhimes, the move to Netflix is part of a plan built with Ted Sarandos, Netflix's Chief Content Officer. "Ted provides a clear, fearless space for creators at Netflix. He understood what I was looking for...," Rhimes said.
The deal is the latest in a string of recent news around the platform's content. Disney announced during its quarterly earnings call that it would be pulling its movies from Netflix in order to start its own streaming service sometime in 2019.
Before that, Netflix said it would be acquiring Millarworld, a comic book company responsible for the plotlines behind popular movies like "Kick ass" and "Kingsman."
Monday's selling is likely not related to the deal between Rhimes and Netflix, but may be a result of a Barron's story from the weekend in which writer Jack Hough called for shares to fall 50% as more content producers pull their content from company's platform in favor of their own solutions. Hough also pointed out the company's rising debt levels as it continues to ramp up its own original content production.
Netflix is up 32.95% this year.
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