A deal with Disney would formally reunite Mr. Murphy with executives he worked closely with for more than a decade. Disney owns the FX cable channel, which is home to his “American Horror Story” franchise, which started in 2011. (The series also runs on Hulu, which Disney controls.) ABC, the Disney-owned broadcast network, recently bought the rights to “9-1-1,” a drama that Mr. Murphy created for Fox in 2018.
When Mr. Murphy signed his Netflix deal, in February 2018, it was just six months after another star producer, Shonda Rhimes, had signed her own nine-figure contract with the streaming company. The back-to-back signings were an emphatic statement by Netflix that it was in the business of paying any price for big-name writers. In the process, it set off a Hollywood arms race (which, amid broader concerns about the streaming business and the writers’ strike, has mostly cooled off).
Mr. Murphy’s tenure at Netflix got off to a bumpy start. Misfires included “The Politician” and “Hollywood.” It was not until last September that Mr. Murphy served up bona fide hits in “Monster: The Jeffrey Dahmer Story” and “The Watcher.” Both series are among the 10 most-watched Netflix originals ever, according to the streaming service.
Mr. Murphy, who continued making shows for Disney even though he was under contract with Netflix — new seasons of “9-1-1” and “American Crime Story” continued apace — would likewise continue to make shows for Netflix after a move to Disney. The next edition of “Monster” will focus on Erik and Lyle Menéndez, the brothers serving life sentences for killing their wealthy parents in 1989, and “The Watcher” has been renewed for another season.