Netflix is shutting down its scripted TV and movie productions in the US and Canada for 2 weeks
- Netflix is pausing scripted TV and film productions in the US and Canada for two weeks, amid the coronavirus outbreak.
- The streaming company is currently in pre-production on the fourth season of "Stranger Things," which would be affected by the shut down, as well as others projects that were previously halted like Ryan Murphy's film "The Prom" and the final season of "Grace and Frankie."
- Netflix joins other media companies in putting projects on hold.
- Visit Business Insider's homepage for more stories.
Netflix is pausing its scripted TV and film productions in the US and Canada for two weeks, due to government restrictions and health and safety precautions, a source close to the situation confirmed to Business Insider.The New York Times' Josh Koblin and The Wall Street Journal's Joe Flint first broke the news on Twitter. Advertisement
The announcement came as US president Donald Trump declared a national emergency on March 13 over the coronavirus outbreak.
Netflix is currently in pre-production on the fourth season of "Stranger Things," which would be affected by the shut down, as well as others projects that were previously put on pause like Ryan Murphy's film "The Prom" and the final season of "Grace and Frankie."The streaming company, like other companies, has also been advising employees based at its Los Angeles and Los Gatos, California headquarters to work from home, the source said.
Netflix joins other TV and film studios in putting productions on hold. Apple has put "The Morning Show" on pause, and Disney, CBS, and NBC, to name a few, have shut down some productions due to the coronavirus outbreak.Wall Street analysts expect Netflix to fare better than some other media companies, like Disney, during the global coronavirus pandemic.People may have more time to stream services like Netflix if they are staying home as a precaution. But analysts at Needham also said Netflix's international subscriber and revenue growth, key drivers in 2020, could be threatened during a broader economic downturn.Advertisement
Disney, meanwhile, is having to close its theme parks, which are major money makers, as well as push some film releases and halt some productions. Analysts at UBS estimated Disney risks $2 billion in revenue if it has to close down its theme parks worldwide for 30 days.
For more on how the coronavirus is affecting media, see our coverage on BI Prime:
- Analysts lay out the financial damage each of Disney's businesses could face, as it closes parks and postpones films due to the coronavirus: Disney is one of the media companies most exposed the impact of the coronavirus because of its large theme park and theatrical businesses.
- Analysts say Disney and Discovery are the media giants most threatened by the coronavirus, but Comcast could fare better: Companies that generate significant shares of their revenue from theme parks, films, and advertising are most sensitive to the pandemic, and a potential economic downturn it could ignite.
- Why Netflix's business could take a hit from the coronavirus, despite reports that 'stay at home' stocks could benefit: Much of Netflix's revenue growth is international, including markets like Europe and Asia, which are especially vulnerable to the virus.
- Disney's surprise CEO change makes sense because of the coronavirus' growing impact on its business, according to a Wall Street analyst: The day-to-day pressures of the Disney CEO may mount if the coronavirus continues to spread outside of China, drawing former chief Bob Iger's focus at a crucial creative moment.
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