Kevin Spacey may continue to cause pain and profit loss for Netflix following his sexual misconduct scandal and swift termination.
The streaming service and production company said Monday it took an “unexpected” $39 million charge for content that “we’ve decided not to move forward with.” Netflix did not specify which content caused the loss in the letter to investors, but a source familiar with the situation told CNNMoney that Spacey’s axed projects are to blame.
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The insider said that the charge is entirely from costs brought on by the ending of House of Cards and opting not to release Gore, both of which starred Spacey.
House of Cards was one of Netflix’s early wins in the original programming space when the political thriller debuted in 2013. Soon after Spacey’s scandal was made public in October, the company announced that season six would be the show’s last.
Netflix was reportedly looking to wrap up House of Cards for some time, but Spacey’s abrupt termination complicated the process. Season six was in production in October but following the scandal, the progress was put on hold for weeks as the show was rewritten without him.
The source said Netflix also scrapped plans to release Gore, a biopic on writer Gore Vidal, which had been in post-production.
Spacey was axed from the company and from other projects after actor Anthony Rapp revealed in October they had an alleged encounter at a party in 1986. Rapp claims Spacey made inappropriate sexual advances toward him when Rapp was 14 years old.
Following the accusation, dozens of other men came forward to allege harassment or assault against the actor.
Netflix has also shifted plans and canceled programming in the wake of other stars being accused of sexual misconduct.
The programming giant canceled plans for another Louis C.K. stand-up special following several allegations against him, to which he confessed and apologized.
Star Danny Masterson was also written out of his role on The Ranch after Netflix received pressure from women who accused him of rape months before. Masterson has denied the now five allegations against him.
