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Netflix forced to write-off $49 million following Kevin Spacey scandal
By Rob Moran
What's a high-profile sexual harassment scandal worth in cold, hard figures? Around $49 million, if you're Netflix.
During a presentation on its fourth-quarter earnings on Tuesday, Netflix revealed it was forced to write-off $US39 million ($48.6 million) for "unreleased content we've decided not to move forward with" as a result of misconduct allegations against star Kevin Spacey.
The losses specifically relate to Spacey vehicles Gore – a biopic on late writer Gore Vidal – and House of Cards, which were both halted in the wake of the actor's public scandal, Reuters reported.
Spacey was first accused of sexual harassment by actor Anthony Rapp in October, dating back to 1986 when Rapp was 14 and Spacey was 26; other allegations followed.
Kevin Spacey's sexual misconduct scandal cost Netflix around $49 million.Credit: Jordan Strauss
Netflix initially suspended production on their hit series House of Cards, pending an internal review. They later fired Spacey, announcing the show would return for its sixth and final season without the actor.
Gore, which was also produced by Spacey, was already in post-production when Netflix announced it would not release the film.
Outside Netflix, Spacey's misconduct also cost the Ridley Scott film All the Money in the World, with studio Imperative Entertainment forced into a $US10 million ($12.5 million) reshoot – and an embarrassing gender pay-gap debate – with Christopher Plummer being brought in to replace Spacey.
Spacey, who is receiving unspecified treatment at a rehab centre in Arizona, is currently facing three police investigations for alleged sexual assaults in London.
Netflix found its content heavily affected by fallout from the #MeToo movement. As well as Spacey, the network cancelled a comedy special by Louis CK following sexual harassment allegations against the comedian, and sacked The Ranch star Danny Masterson, who was accused of sexual assault by four women.
However, the $39 million write-down only referred to Spacey's projects, MarketWatch reported.
Despite the losses, Netflix saw its revenue for the quarter top $US3.2 billion ($4 billion), picking up a further 6.36 million subscribers off the back of high-profile new seasons of Stranger Things and The Crown, and Will Smith-Joel Edgerton blockbuster Bright.
The streaming service now has 117.58 million subscribers around the globe, and earlier this year revealed it is set to spend $US8 billion ($10 billion) on TV shows and movies in 2018.
– with Reuters