>> It's a plot twist few saw coming, Shonda Rhimes the Queen of Nighttime TV dramas is moving her kingdom to Netflix. The streaming service's announcing, it has lured the creative ABC hits, Gray's Anatomy, Scandal, and How to Get Away With Murder, away from the network. It's the latest big get for Netflix, which just last week, announced it's dragging David Letterman out of retirement for a new talk show.
All this bulked up content reportedly leaving the tech titan billions of dollars in debt and begging the question, how many more deals can Netflix pull off before it breaks the banks. Reuters' Breaking Views columnist, Jen Saba>> Right now, the markets been giving them money, and also investors have been giving them money as well.
So, that hasn't been a problem, people look at this company and they see growth, they see that they way far ahead compared to other video streaming services. And if they're subscriber growth starts declining, that's gonna be a big issue for Netflix.>> And competition, it's coming from all corners.
Hulu, Amazon, Apple, Facebook, and the recent announcement of a new streaming service from Disney, which also said it's pulling its movies from Netflix. Stealing Rhimes away from ABC seen by some as a way for Netflix to hit back at parent company Disney. Netflix stock has soared 38% this year, but if the Wall Street well does ever run dry, Netflix has another place to turn for cash.
It's 100 million subscribers who currently pay around $10 a month for the service.>> They could raise the price, and that may see people saying, hey, enough of this. But right now, it's low enough to where if they raise it a couple of dollars, it probably will be okay.
>> That is unless fees really steepen, as Netflix takes on more financial risk in a business notorious for producing more flops than hits.