NFLX
The Obama content deal is loosening up
Netflix’s long-running exclusive relationship with Higher Ground Productions is coming to an end. That’s the studio founded by Barack and Michelle Obama, and for the last eight years it’s pumped out a steady stream of docs, series, and films for Netflix.
Why investors should care
This isn’t a revenue disaster on its own, but it does chip away at one of Netflix’s sneaky advantages: owning premium, conversation-starting content that keeps people watching. When a studio that helped deliver titles like American Factory and Leave the World Behind starts shopping elsewhere, the content buffet gets a little less exclusive.
Not exactly a breakup, more like a soft launch of dating around
The good news for Netflix is that the relationship isn’t disappearing overnight. The companies already renewed in 2024 with a first-look setup, so Netflix still gets first dibs on new projects. But Higher Ground can also take its shows and films to other studios and streamers now, which is basically the entertainment-industry version of “we’re still friends, just seeing other people.”
Big picture
Higher Ground has a solid track record and an Academy Award under its belt, so its projects could attract serious attention from rival streamers and traditional media companies. For Netflix, the takeaway is simple: the content arms race just got a tiny bit more expensive.