By Rayiah R.
Shonda Rhimes is a huge name in television production. With works like How To Get Away With Murder, Private Practice, Scandal, and Grey’s Anatomy, Rhimes was making an estimated $10 million a year with ABC according to the Wall Street Journal. Rhimes shows are known for their diversity, cliffhangers, and dramatic twists and turns. UCLA professor Darnell Hunt, who studies diversity in the entertainment industry said, “Shonda Rhimes paved the way for a lot of the transformation that we are seeing in television today.” Now, on 8/13/17, Netflix announced the Shondaland Production is moving to a Netflix for a multi-year deal. Financial Details of the Netflix deal are not disclosed on how long she is staying or the revenue involved in her contract.
Netflix, as of 2016 according to Google, has a revenue of 8.83 billion dollars and a stock price of $166.09. They make their movie almost completely off of licencing rights and subscriptions. For each movie on Netflix, they buy the right to broadcast, increase viewer base, upkeep subscriptions, and repeat. Netflix is the largest buyer of the licencing rights of any piece of content, topping Youtube – which makes $7.60 every thousand views. Netflix is no longer competing with traditional TV companies, they are also up against tech companies such as Google, Amazon, and Youtube Red. Because of this Netflix is luring away many big names onto their programming and Original Netflix Series. Netflix has gathered many big names in the production business like, The Coen Brothers (True Grit, The Big Lebowski), Ava DuVernay (A Wrinkle In Time, 13th), Chuck Lorre (The Big Bang Theory, Two and a Half Men), and David Fincher (Gone Girl, House of Cards). Shonda Rhimes is one of many big screen names Netflix has won over.
Rhimes existing, well-known shows will remain on ABC. Her upcoming projects that are already in the works, like the drama For The People and the Grey’s Anatomy spin-off will also stay with ABC. Netflix is continuing to invest in more original programming to win over and audience.