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Netflix reaches for the moon with movie deal

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The Netflix logo is pictured on a television remote in this illustration photograph taken in Encinitas, California, January 18, 2017. REUTERS/Mike Blake

NEW YORK, June 21 (Reuters Breakingviews) - It’s the start of summer and the war over content is getting even hotter. Netflix (NFLX.O) said on Monday it struck an agreement with famed “Jaws” director Steven Spielberg and his studio Amblin Partners to produce films. Netflix may be one of the most popular streaming services around with over 200 million subscribers but even the king can be paranoid about losing his crown.

Though the financial terms were not disclosed, Netflix is known for splurging on creators including a $300 million deal with “Glee” producer Ryan Murphy and $100 million handshake with Shonda Rhimes, who spearheaded “Bridgerton.” Amazon.com (AMZN.O) turned up the crank by agreeing to buy MGM movie studio last month. But there is another rival known for its user-generated content: Alphabet’s (GOOGL.O) YouTube. Last week, Nielsen research found that both Netflix and YouTube tied with 6% each of American TV viewership in May. Offering unique content is one way to keep the reign. (By Jennifer Saba)

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