Netflix loses $39 million in unreleased content after Kevin Spacey scandal

Lawrence Kim
January 23, 2018

Netflix reportedly took a $39 million write-down for its fiscal fourth quarter due to the cancellation of two Kevin Spacey projects, Deadline reports. The company did not specify which content in its letter to investors, but a source familiar with the matter told CNNMoney that it's from axed Kevin Spacey projects. But it turns out the cost of not doing business with Spacey is even greater.

In 2017, for the first time Netflix reported annual profit on worldwide markets.

The news offers a glimpse into the financial cost that recent sexual harassment scandals have had on producers and distributors. The scandal badly affected other companies in Hollywood. The streaming media and video-on-demand service later chose to bring the show back for a final season, minus Spacey. Netflix suspended production in November of the sixth and final season of the drama.

Netflix declined to publish another movie with him - the Gore, in which Spacey co-produces and plays the role of writer Gore Vidal.

Several people, beginning with Star Trek actor Anthony Rapp, accused Spacey of sexual assault, causing the actor to be written out of several productions.

Netflix says that it's expecting subscriber additions of 6.35 million for the first quarter of 2018.

Netflix on Monday reported signing up 8.33 million new streaming customers in the final quarter of previous year, 2 million more than analysts expected, sending its shares up in after-the-bell trade more than 7pc to a record high.

More than 30 men have accused Spacey of sexual misconduct.

Netflix's decision to cancel a Louis C.K. special following a damning New York Times article detailed allegations of sexual misconduct - something the comedian later admitted to - may also account for the loss. The film was in post-production and had to be broadcast this year.

Other reports by Click Lancashire

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