LOS ANGELES : Hollywood veteran Peter Chernin announced Wednesday that he is forming a new studio, betting that the appetite for new content will remain strong despite the pall cast over the streaming industry by Netflix Inc's recent subscriber losses.
The studio will combine Chernin's namesake film and television production company, Chernin Entertainment, with two other studios. It acquired the U.S. operations of Red Arrow Studios, maker of the Netflix reality show"Love is Blind," in a June 30 deal that one source valued at $180 million. Chernin raised $500 million in equity financing from Providence Equity Partners, and another $300 million in debt financing through managed affiliates of Apollo Advisors, to execute the expansion. He told Reuters he believes that industry spending on movies and scripted TV series, reality shows and content produced outside of the United States will continue to grow as streaming services compete to attract new subscribers.