WarnerMedia's deal with Bad Robot suggests it's willing to prioritize securing major talent over full content rights ownership:
a five-year output deal with Star Wars director J.J. Abrams' production company Bad Robot, per The Verge. The deal, worth $250 million, is set to run through 2024. Bad Robot will create streaming-exclusive original TV series, films, and even video games for WarnerMedia across its holdings.
Overlap. Bad Robot's content will be exclusive to WarnerMedia and its properties, but Abrams will see out preexisting production deals with Paramount and Disney, where he's producing the next film installation of Star Wars. That WarnerMedia was willing to pay a premium for a compromise deal highlights the heightened competition and stakes the streaming wars have created for exclusive rights to content and talent. But WarnerMedia might also have the shorter stick in these decisions: Bigger players like Disney or Netflix would likely balk at signing away 50% ownership when they already have such huge existing libraries and sway with their established brands.
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