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Investing.com-- Warner Music Group (NASDAQ:WMG) is in talks with Netflix Inc (NASDAQ:NFLX) to create several movies and documentaries based on the label’s artists and songs, Bloomberg reported on Wednesday.
The two are close to signing an agreement, the Bloomberg report said, citing people familiar with the matter.
The deal could represent a shift in strategy for Warner, which earlier this year shuttered its film and TV production division as part of a cost-cutting initiative. The company is now seeking to outsource that work, Bloomberg reported.
The move could also in part be motivated by the recent success of pop star Taylor Swift’s companion movie for her new album, “The Life of a Showgirl.”
The movie, titled “Taylor Swift: The Official Release Party of a Showgirl,” was distributed by AMC Theatres (NYSE:AMC) and grossed over $50 million globally in a limited three-day run.
Warner Music holds the rights to several popular musicians, including Ed Sheeran, Cardi B, and Bruno Mars.
Artist-based movies and shows could also represent another lucrative addition to Netflix’s catalogue, as the streaming giant seeks new avenues to drive up its already strong subscriber base.