The News Herald (Willoughby, OH)
Netflix reveals big price tag tied to the Spacey scandal
Earnings report shows allegations cost $39 million
LOS GATOS » Last fall, Netflix brought the curtain down on its relationship with actor Kevin Spacey after the two-time Oscar winner was accused of sexual misconduct involving a 14-year-old boy back in 1986.
This week, Netflix disclosed just how much it cost the company to be rid of the black mark from the Spacey scandal: $39 million.
Netflix divulged that figure in its fourth-quarter earnings report when it said it took a $39 million charge during the quarter for what it called “unreleased content we’ve decided not to move forward with.” A person close to the matter said the $39 million was related to the dismissal of Spacey from the Netflix series “House of Cards” and the cancellation of other projects Spacey and Netflix had in the works. Among those was a planned movie starring Spacey as the late author Gore Vidal.
Netflix cut its ties with Spacey last fall after actor Anthony Rapp said Spacey tried to forced himself on Rapp at a party in 1986. At the time, Spacey was 26, Rapp was 14, and both were appearing in Broadway shows when Rapp ended up at a party at Spacey’s apartment one night.
Since Rapp’s original accusation, more than 30 other men have leveled similar charges against Spacey.
After the Spacey allegations came to light, Netflix temporarily suspended production on “House of Cards,” and later wrote Spacey’s character, President Frank Underwood, out of the series. Netflix then said the show would come back for a final goround this year, centered on actress Robin Wright’s character, Claire Underwood.
During a conference call to discuss Netflix’s results on Jan. 22, Chief Financial Officer David Wells didn’t mention Spacey directly with regards to the $39 million charge. However, Wells said the writedown was “related to the societal reset around sexual harassment.”
Netflix has been busy dealing with reports of sexual harassment and impropriety against actors involved with its programs. In addition to Spacey, Netflix cancelled plans for a second standup special from comedian Louis C.K. after he admitted to reports of sexual misconduct brought by several women. Netflix also had actor Danny Masterson’s character written out of the TV series “The Ranch” after he became the subject of rape allegations. Masterson has denied all of those accusations.
The $39 million charge Netflix took due to the Spacey incidents had little bearing on investors’ sentiment about Netflix shares, which rose almost 10 percent Tuesday, to close at $250.29.