Netflix spends big to lure top talent from networks

LOS ANGELES - With yet another mighty roar, Netflix sent a warning shot to the rest of the entertainment industry - landing a new multiyear deal with prolific TV producer Ryan Murphy, the man behind 20th Century Fox Television's 'Feud,” 'American Horror Story,” 'Glee” and other TV shows.

The deal - which some pegged at as much as $300 million - is the latest evidence of just how powerful the streaming giant has become at luring Hollywood's top talent away from established competitors.

The agreement, which was announced late Tuesday, adds another name-brand producer to Netflix's growing stable of hit makers.

It also signals the company's willingness to splurge on big names as it continues to borrow heavily to fund its ambitious growth strategy, which will see the company spend a projected $7.5 billion to $8 billion on content this year - up from $6 billion in 2017.

While some experts see the Murphy deal as the latest exhibit in Netflix's profligate ways, the announcement is being lauded as a coup for the Los Gatos, Calif., company, which recently poached 'Grey's Anatomy” and 'Scandal” producer Shonda Rhimes from ABC in what is shaping up to be an escalating war for talent with traditional networks.

Netflix declined to comment on the financial terms of the five-year deal, which begins July 1, after his agreement with Fox expires.

The producer, whose shows appear on the Fox broadcast network as well as the FX cable network, is known for his edgy creative tastes that win awards and critical plaudits but not always mass viewerships. His latest project for FX is 'Pose,” a transgender-themed dramatic series that is set to debut this summer.