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Home / News / Entertainment News / Shonda Rhimes leaves ABC to join Netflix
Entertainment

Shonda Rhimes leaves ABC to join Netflix

Shonda Rhimes leaves ABC to join Netflix
Written by Vaneet Randhawa
Edited by Vijaya
Aug 15, 2017, 11:00 pm 3 min read
Shonda Rhimes leaves ABC to join Netflix
Credits:

Netflix announced that it had signed on the most illustrious creator working in television- Shonda Rhimes. While Rhimes coming on-board was a big victory in itself, but what is even more satisfying for Netflix is that they served a big blow to ABC, where Rhimes worked previously. Rhimes is a name synonymous with shows like Grey's Anatomy, How to Get Away with Murder etc.

Beginnings
The story of Netflix

Netflix is the world's top internet-based subscription video streaming service that allows users to watch TV shows and movies online. Established in 1997 by Reed Hastings and Marc Randolph, Netflix started its business in 1998, as a DVD mail order service. The company became a streaming video service in 2007, which initially streamed past seasons of TV shows from various channels, along with movies.

Details
Despite saturation, Netflix numbers show growth

Despite saturation in the streaming industry, Netflix still has been gaining in terms of paid subscriptions. In the US, Netflix has 50.32 million paid subscribers up by 9,40,000 in the second quarter; and has 48.71 million subscribers outside the US. The international market has continued to be a pain point but the company is hopeful of making its first profit internationally in 2017.

Troubled times
Netflix is getting no chill

Recently, Netflix has been at the receiving end, hinting at trouble for the company. In March, it was announced that many of Fox shows would be pulled off Netflix (perhaps because Netflix had poached Fox employees). Then, there were reports of Netflix being $20 billion in debt. Complaints regarding its new user ratings which had made user- experience worse further added to the company's distress.

08 Aug 2017
Move over, you got competition: Disney pulls out of Netflix

Media and entertainment giant Walt Disney Company decided to end its relationship with Netflix and said no new Disney shows will be available on Netflix post-2019. Disney announced that it was buying a streaming video company- BAMTech for over $1.5 billion. With this, it also revealed its plans to enter into the streaming arena, delivering a huge blow to Netflix.

Strengths
What Shonda brings to Netflix?

Signing Rhimes will be beneficial to Netflix as her shows don't cost as much as other dramas. Based on human relationships, the shows don't demand heavy CGI or special effects. To put things into perspective, "Orange is the New Black and House of Cards reportedly cost $4-4.5 million an episode whereas Sense8 and Game of Thrones reportedly cost $8-9 million an episode".

Do you know?
Did Netflix just kill two birds with one Rhimes?

Disney had recently announced its breakup with Netflix and by signing up Rhimes, Netflix has won on more than one turf. By bringing Rhimes on-board, Netflix sent a strong message to Disney (ABC is a network owned by Disney) that they are a tough competition.

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Eternally curious (at times bordering on FOMO), firm believer of science and equality. Biotech graduate with a totally irrelevant marketing degree.
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