Warner Music Group (NASDAQ:WMG) is in advanced discussions with Netflix Inc (NASDAQ:NFLX) to develop multiple films and documentaries centered on the label’s artists and their music, according to Bloomberg.
People familiar with the negotiations told Bloomberg that the two companies are close to finalizing an agreement.
The potential deal marks a strategic shift for Warner, which earlier this year shut down its in-house film and TV production unit as part of a broader cost-cutting effort. Instead, the company now aims to outsource its entertainment projects, Bloomberg said.
The move may also be inspired by the recent success of Taylor Swift’s companion film for her latest album, “The Life of a Showgirl.” The movie, titled “Taylor Swift: The Official Release Party of a Showgirl,” was released through AMC Theatres (NYSE:AMC) and generated more than $50 million worldwide during a three-day limited engagement.
Warner controls the rights to an impressive roster of artists, including Ed Sheeran, Cardi B, and Bruno Mars.
For Netflix, adding artist-driven films and series could further bolster its content lineup and help attract and retain subscribers as the competition for streaming audiences intensifies.
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