Netflix continues to pull top talent from traditional Hollywood players with their latest signing.

Ryan Murphy has produced several hits including:
1) Glee
2) Nip/Tuck
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?

Flashback. Has Netflix’s Ted Sarandos Rescued (or Ruined) Hollywood?

Shonda Rhimes has produced several hits including:
1) Scandal
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!

More. Amazon’s streaming service Twitch is pulling in as many viewers as CNN and MSNBC