Kevin Spacey’s sexual harassment scandal, among others, have cost the online streaming service, Netflix $39 million due to “unreleased content” produced by the company.
Netflix released its fourth quarter (Q4) earnings report on Monday, which depicted a large hit to the company’s cost of revenues.
“We took a $39m non-cash charge in Q4 for unreleased content we’ve decided not to move forward with,” according to the report. “This charge was recognized in content expense in cost of revenues.”
While the company did not say what the unreleased content was or provide a reason for the unreleased content, there is reason to believe that the canceling of Spacey’s series, “House of Cards,” may have had an impact.
The show, known as an American political thriller, premiered on Netflix in 2013. Spacey has played the lead role on the show since its debut.
In October 2017, Netflix and Media Rights Capital announced that season six of “House of Cards” would be its last and that a halt in production was necessary in order to write out Spacey’s character from the show, according to an article released by the New York Times. This statement was released after reports of Spacey’s sexual misconduct arose.
Despite Netflix’s $39 million hit, the company ended its Q4 with 36% growth in streaming revenue, amounting to over $11 billion. The streaming service also added 24 million new memberships. For more information on the Netflix Q4 earnings report click here.
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