Reese Witherspoon built a billion-dollar content company by using her book club's 2.5 million subscribers to secure book rights, then pre-selling the stories to Netflix, Disney, and other platforms before production. Her company Hello Sunshine sold for $900 million.
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$900 million
Approximately 2.5 million subscribers
November 9, 2022
Chapters
Did you know Reese Witherspoon made almost a billion dollars by selling her content to Netflix, Disney and Hulu. Her production company, hello Sunshine sold for $900 million and it had a really cool structure to it. I obsess about structures because that's how you have level 10 games. She has a book club that has two and a half million subs. She approached publishers of the books like these, and in exchange for having her book club read the book, she negotiates the rights to turn these stories into movies or TV shows, which she then shops around to all the major platforms like hbo, Apple tv, Netflix, Disney, blah, blah, blah. Then she produces them into award winning content. She has this virtuous circle that goes from attention of subscribers to getting her subscribers to validate, to negotiating upfront. Hey, I'll give you access, you give me a right to buy. The exclusive right to create your content into tv. She takes that content she shops at before she ever puts in a dollar and then she uses that to produce the content, which then gives her more money and goes back into the book club continuously. This is level 10 execution of a business plan. So the question for you is, where could you be a little bit like Reese?