Netflix strikes production deal with Shepperton Studios
Netflix has struck a deal to set up a permanent production base at Shepperton Studios. Netflix is expected to spend more than $1 billion in the UK this year producing content for its Netflix originals platform. This represents a whopping 50% increase in spending in the UK from 2018.
Netflix has a budget of $13 billion to spend on original programming this year.
Netflix appears to be making movies in lower budget areas and then running this movies in the U.S. It’s a smart move to produce content that’s cheaper in another country but it’s a big gamble if U.S. viewers will like it. UK movies and TV shows appear to be popular with a lot of Americans and so the Shepperton Studios move makes sense.
Netflix has made more than 40 shows in the UK last year, including The Crown.
Rumor has it Netflix originally tried to buy space at Pinewood Studios but Disney already has a deal with Pinewood until 2029. Rumors have it that Disney Executives used money and power to keep Netflix out of Pinewood Studios so that they couldn’t produce high quality shows there. Netflix then went to Shepperton Studios in the UK which is a sister property of Pinewood Studios.
Disney has pulled all its content from Netflix as it rolls out its own streaming service later this year. With Disney attempting to brainwash viewers of their shows with liberal ideologies such as anti-white racist remarks in their films or putting gay and lesbian characters in their children’s shows, many are hoping Democrat leaning Disney and their Disney+ streaming service will fall flat on its face. Time will tell but with their purchase of Marvel and the Star Wars franchise several years ago, Disney is going to give Netflix a real run for its money.
Both Netflix and Disney are overvalued and do not meet the stringent requirements for a long-term buy and hold addition to the GST Portfolio.
Disclosure: I do not hold any position in any stock mentioned in this article.