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Netflix Announces Expansion of Deal with Producer Rhimes

The deal gives Netflix and Shondaland Media the opportunity to exclusively produce, stream and distribute feature films.
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Netflix  (NFLX) - Get Netflix, Inc. (NFLX) Report Thursday announced an expanded partnership with star producer Shonda Rhimes, a driving force behind the wildly popular historical drama “Bridgerton.”

“After the record-breaking success of 'Bridgerton', Netflix and prolific producer Shonda Rhimes are extending their creative content relationship,” the company said.

Inspired by the romance novels by Julia Quinn, "Bridgerton" broke Netflix records with 82 million member households tuning in globally during its first 28 days, the company said.

“A new pact expands the current deal with Rhimes, her company Shondaland as well as her long-standing producing partner Betsy Beers,” Netflix said. Terms of the deal weren’t disclosed.

“The newly expanded partnership will give Netflix and Shondaland Media the opportunity to exclusively produce, stream and distribute feature films as well potential gaming and virtual reality content,” the Los Gatos, Calif., company said.

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“The pact currently includes a branding and merchandise deal for Shondaland Media content, which will now add live events and experiences.”

The deal includes three additional seasons of “Bridgerton” and a new series, “Inventing Anna,” which Rhimes and Beers will produce.

It’s unclear if the news affected Netflix, as it traded at $534.37, down 0.3% at last check. But that was smaller than the Nasdaq Composite’s 0.7% dip.

Last month, Credit Suisse analysts upgraded Netflix to outperform from neutral, keeping their $586 price target.

The analysts expect subscriber growth to normalize in the fourth quarter. A survey by the firm among U.S. customers reinforced the platform's competitive position and high user satisfaction.

Also last month Netflix and Amblin Partners, the Steven Spielberg-led studio, announced a partnership.