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Netflix (NFLX) Buys Movie Rights of Dwayne Johnson Starrer

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Netflix’s (NFLX - Free Report) relationship with Hollywood continues to expand as the streaming giant recently acquired the rights of an original film starring Dwayne “Rock” Johnson.

The movie, titled John Henry and The Statesmen, is written by Tom Wheeler and directed by Jake Kasdan. While Tom Wheeler is known as the writer of The Lego Ninjago Movie, Kasdan and Johnson have previously worked in Jumanji: Welcome to the Jungle.

Dwayne Johnson is considered as one of the most bankable stars in terms of hits, globally. He is one of the highest paid actors in Hollywood and has been speculated to be a prospective candidate for the U.S. Presidential elections. Reportedly, Johnson has the 10th most-followed account on Instagram with almost 86 million followers.

Johnson’s broad appeal as an action star in markets outside the United States is beneficial for Netflix’s international growth. Per Quartz, which quoted Box Office Mojo, Johnson’s 2018 film, Skyscraper earned “more than three-quarters of its box office returns overseas.”

Netflix is trying to rapidly expand its international footprint to offset stiff competition in the domestic market from the likes of Alphabet’s (GOOGL - Free Report) YouTube, Amazon Prime and AT&T’s (T - Free Report) HBO. In the last reported quarter, the company added 4.47 million of international subscribers.

Notably, the addition of Johnson to its roster also brings Netflix in confrontation with Disney (DIS - Free Report) . Johnson starrer Jungle Cruise, which is distributed by Disney studio Buena Vista, is expected to release in October 2019.
 

Netflix, Inc. Price and Consensus

Netflix, Inc. Price and Consensus | Netflix, Inc. Quote

 

Hollywood ‘A’ Listers Boost Netflix’s Content Portfolio

Recently, Netflix snapped up a number of Hollywood ‘A’ listers to boost its content portfolio. Partnership with prolific creators like Ryan Murphy, Shonda Rhimes, Shawn Levy and Jenji Kohan provides an impetus to the company’s original content expansion strategy.

Moreover, prolific actors like Jennifer Aniston and American stand-up comedian Tig Notaro have joined the list. Reportedly, Aniston is also working with Adam Sandler in Netflix’s new comedy show Murder Mystery.

Netflix’s massive spending on content can primarily be attributed to high production values. The growing involvement of well-known Hollywood stars definitely makes the shows more attractive. This is likely to boost subscriber growth in the to-be-reported quarter.

Moreover, Netflix’s Hollywood partnerships and high production values have helped its shows win accolades and awards. This year at Emmys, the company tied with HBO and won 23 trophies in different categories.

Currently, Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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