Netflix jumps after announcing a deal with famed 'Glee' producer Ryan Murphy
- Netflix shares are spiking after the company announced a deal with "Glee" and "American Horror Story" producer Ryan Murphy.
- Netflix's fourth-quarter revenue beat was "fueled by our original content," according to the streaming giant.
Netflix shares are spiking Wednesday after the streaming giant announced a deal with Ryan Murphy, the producer of "Glee" and "American Horror Story," reportedly worth up to $300 million over five years.
Netflix's stock is trading up more than 3% to above $266 a share. Netflix shares hit an all-time high of $284 in late January.Murphy will remain with 21st Century Fox through the end of his current contract this summer, and Disney's pending acquisition of several Fox businesses was reportedly a factor in his decision to leave the traditional television studio for Netflix, according to The New York Times.
This is Netflix's latest move to steal top producers from traditional television in order to create original content as it competes with other streaming giants like Hulu, Apple, and Amazon. Last August, Netflix signed a deal with Shonda Rhimes, the producer behind ABC's hit shows "Grey's Anatomy" and "Scandal."
Netflix said it will spend up to $8 billion this year on original content, which comes as no surprise to investors who have grown accustomed to Netflix's propensity to spend big. By comparison, Apple said it will only spend $1 billion on original content.
After Netflix beat Wall Street estimates on revenue for the fourth-quarter, the company said in its earnings report that the strong revenue was "fueled by our original content."