Shonda Rhimes signs multi-year deal with Netflix, leaves 15-year relationship with ABC

Sarah E. Freeman/Grady College, freemans@uga.edu in New York City, Georgia, on Saturday, May 21, 2016

Netflix scoops up another important talent to join its roster of powerful content creators. This time, it takes Shonda Rhimes and her production company Shondaland from their longtime partnership with ABC Studios. What's said to be a "rich four-year pact" will have Rhimes and longtime producing partners Betsy Beers create new content for Netflix. She is expected to get a percentage of the back-end on programming she makes for the streaming service. Netflix has long had Shondaland shows like Grey's Anatomy (which is already entering its 14th season), Scandal, and How To Get Away With Murder on its service.  

ABC will continue to be the home for the abovementioned shows and even an upcoming spinoff for Grey's as well as a new drama called For The People. Rhimes said, "Our current shows will continue to thrive on ABC and Shondaland will be there every step of the way." Rhimes has had a 15-year relationship with ABC. It's being reported her contract with them will expire in June 2018 and she has previously informed ABC about her plans to move on after the contract expires—but not necessarily to a competitor. While financial terms of the deal weren't discussed, Rhimes was reportedly earning US$10 million a year with her deal with ABC. We expect Netflix would be paying a premium to get her to agree to an exclusive deal. This also gives Rhimes greater creative freedom to make content she'd want to make in formats she'd want to try out.