said Monday it took an “unexpected” $39 million charge for content that
“we’ve decided not to move forward with.” 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.
The Financial Times was first to report the details behind the charge.
The news offers a glimpse into the financial cost that recent sexual
harassment scandals have had on producers and distributors. A wave of allegations has hit Hollywood and other industries.
“House of Cards” gave Netflix an early win for original programming
when the political drama debuted in 2013. Shortly after the Spacey
scandal broke in October, Netflix announced that the sixth season of the
show would be the last.
While sources close to the
show told CNN at the time that a decision to end “House of Cards” had
been in the works for some time, Spacey complicated things. Production
on the final season, which has yet to air, was put on hold for weeks as showrunners rewrote the show without him.
Netflix also scrapped plans to release “Gore,” a biopic on writer Gore Vidal. The film had been in post-production.
Actor Anthony Rapp told
BuzzFeed in October about an alleged encounter with Spacey at a party
in 1986, during which he said Spacey made a sexual advance toward the
then 14-year-old Rapp.
Current and former “House of Cards” employees later told CNNMoney that Spacey had created a “toxic” work environment through a pattern of sexual harassment.
The charge marred what was otherwise a blowout quarter
for Netflix. The company added a record 8 million new subscribers in
the fourth quarter, despite a price hike announced during that period.
Spacey isn’t the only Netflix star to be accused of sexual harassment or misconduct.
Netflix has also canceled plans for another Louis C.K. stand-up special in the wake of sexual misconduct allegations. And Danny Masterson was written out of “The Ranch” amid rape allegations.
Louis C.K. said the stories about him were true, and he apologized. Masterson has denied the allegations against him.
