Streaming service announces write-down in fourth-quarter earnings presentation
Netflix has announced a write-down of $39 million (£28m) for its fiscal fourth quarter, largely due to projects affected by the Kevin Spacey sexual misconduct scandal.
Spacey is under investigation by police following recent accusations of sexual misconduct, assault and harassment. Following the claims, Spacey issued a statement, saying that he was “taking the time necessary to seek evaluation and treatment”.
After the allegations emerged, Netflix suggested that its hit show House Of Cards would continue without Spacey’s involvement for a final sixth season.
Meanwhile, Gore – the uncompleted Gore Vidal biopic starring Spacey – has been dropped by the streaming service.
Deadline reports that while the company didn’t “specify the exact causes of the accounting move” during its fourth-quarter earnings presentation on Monday (January 22), “a source familiar with the accounting for the quarter later confirmed… that the write-down accounted for the final episodes of House of Cards as well as the feature film Gore“.
Netflix CFO David Wells has said that “these types of business write-downs are an ongoing facet… of producing content,” adding: “We just hadn’t had one of this magnitude and related to the societal reset around sexual harassment, so it was somewhat unusual in that respect.”
Last week, it was reported that a new investigation has been opened by London police into Kevin Spacey sexual assault claims. The new case brings the total of investigations involving Spacey to three.