Warner Music Group Corp. is close to finalising a deal with Netflix Inc. to produce a slate of movies and documentaries inspired by the label’s artists and songs, according to US media reports.

The partnership marks a strategic shift for Warner Music, which earlier this year shuttered its in-house film and TV division as part of a cost-cutting plan. The company now intends to outsource content development, sources told Bloomberg.

Speaking at Bloomberg’s Screentime conference in Los Angeles, Warner Music CEO Robert Kyncl declined to confirm any specific deal but emphasised the storytelling potential within the label’s catalogue.

“The stories we have are incredible, and they haven’t been told,” Kyncl said. “It makes a lot of sense for us to partner with a company that can bring it alive all around the world.”

Warner Music represents global superstars such as Ed Sheeran, Cardi B, and Bruno Mars.

At the same conference, Netflix co-CEO Greg Peters dismissed speculation that the streamer was eyeing a takeover of Warner Bros. Discovery. “We come from a deep heritage of being builders rather than buyers,” Peters said, adding that large media mergers “don’t have an amazing track record over time.”

Peters said Netflix would continue to evaluate growth opportunities pragmatically: “If a major acquisition is the best way to grow our business, great. If not, we should do something else.”