When “House of Cards” debuted in 2013, it catapulted
Netflix into a whole new level of Hollywood recognition and acclaim. The dark
political series about an unscrupulous Washington power couple became Netflix’s
first breakout hit, planting a flag for the streaming service in the
competitive world of original TV programming.
But just as its protagonist Frank Underwood fell ignominiously
from power last season, the series itself has collapsed in scandalous fashion
following allegations around actor Kevin Spacey, who has been accused of sexual
harassment and assault by numerous men including employees on the show.
Netflix isn't the only company left holding the bag.
Media Rights Capital is the production company that owns the series and
licenses it to Netflix. Since news about Spacey broke Sunday, followed by
additional allegations, the companies moved quickly to cancel the seventh
season of "House of Cards" and put production of the sixth season on
indefinite hold. Netflix said in a statement Friday night that it is cutting
all ties with Spacey and that he will not be involved with the show that he has
starred in since 2013.
Robin Wright and Kevin Spacey play Claire and Frank Underwood in the Netflix series "House Of Cards. (David Giesbrecht / Netflix )
"Netflix will not be involved with any further
production of 'House of Cards' that includes Kevin Spacey," the company
said in a statement.
While the scandal represents a public-relations
debacle for Netflix, it isn't likely to materially affect the company, even
though "House of Cards" remains one of its most popular series,
experts said.
"I think of 'House of Cards' as a
trampoline," said Paul Levinson, a professor of media and communications
at Fordham University. "Netflix put it up, jumped on it and Netflix got so
high that it no longer needs 'House of Cards.' "
Netflix spent about $100 million to produce two
13-episode seasons for "House of Cards." The political drama launched
the company's venture into original programming, helping to transform the
streaming service into a global powerhouse and disrupter of the TV business.
The Los Gatos-based company now has 104 million paid streaming subscribers and
has made massive investments in new shows. It will spend as much as $8 billion
on content next year alone.
As a result, Netflix now has multiple hit series —
including "Stranger Things," "Orange Is the New Black" and
"The Crown" — that it can rely on to retain and attract subscribers.
The speed at which Netflix responded to the
allegations against Spacey — the first of which was made by actor Anthony Rapp
on Sunday in Buzzfeed — will likely work in the company’s favor, according to
Michael Pachter, a digital media analyst at Wedbush Securities, where he covers
Netflix.
"I think Netflix is handling this extremely well,"
Pachter said. "This is what you want them to do from an investor's point
of view."
Analysts said the cancellation of "House of
Cards" was likely an easy decision for Netflix to make because the series
was already past its prime and nearing the end of its run.
Public scandals are rare for major TV series but not
unheard of. The most recent instance was CBS' "Two and a Half Men,"
which saw the departure of Charlie Sheen after the actor's personal problems
became public. His character was killed off from the show.
Among "House of Cards" fans, the most recent
season was seen as something of a creative resurgence but the show was clearly
on the decline and had lost a lot of its buzz. Creator and showrunner Beau
Willimon had left the show last year after four seasons.
"During the time I worked with Kevin Spacey on
'House of Cards,' I neither witnessed nor was aware of any inappropriate
behavior on set or off,” Willimon said in a statement. “That said, I take
reports of such behavior seriously and this is no exception. I feel for Mr.
Rapp and I support his courage."
Rapp alleged that he was 14 when Spacey made an
unwanted sexual advance on him during the 1980s. Spacey responded by saying
that he didn't recall the incident, but offered Rapp "the sincerest
apology for what would have been deeply inappropriate drunken behavior."
The two-time Academy Award winner also used the opportunity to come out as a
gay man.
Since Sunday, the accusations have quickly snowballed,
including an unnamed artist who told
Vulture that he was a minor when he
entered into a consensual sexual relationship with Spacey decades ago.
On Thursday, eight current and former "House of
Cards" employees alleged to CNN that Spacey created a "toxic"
work environment with his behavior. The allegations include one former
production assistant who said Spacey sexually assaulted him during one of the
show's early seasons.
A representative for Spacey could not be reached for
comment.
Netflix could face civil legal exposure from any employee
harassment that occurred on "House of Cards" because Spacey was also
credited as an executive producer on the show, which means that he was in a
supervisory position, according to Genie Harrison, an attorney who specializes
in employment and sexual harassment cases.
"The company will have strict liability because
he's a supervisor and because he would be seen as acting on behalf of the
company," Harrison said.
As the studio behind "House of Cards," Media
Rights Capital could also face legal exposure for any of its employees who were
harassed by Spacey on the show.
MRC, which is based in Beverly Hills, declined a
request for an interview but said in a statement that during the show's first
year of production, in 2012, someone on the crew shared a complaint about a
specific remark and gesture made by Spacey.
The company didn't elaborate on the
nature of the complaint.
"Immediate action was taken following our review
of the situation and we are confident the issue was resolved promptly to the
satisfaction of all involved. Mr. Spacey willingly participated in a training
process and since that time MRC has not been made aware of any other complaints
involving Mr. Spacey," the company said in the statement.
Netflix, which also declined an interview request,
said in a statement Friday that it was just made aware of the 2012 incident and
was informed that it was swiftly resolved.
"Netflix is not aware of any other incidents
involving Kevin Spacey on-set," the company said in a statement. "We
continue to collaborate with MRC and other production partners to maintain a
safe and respectful working environment."
Both companies said they are evaluating the future of
"House of Cards." It remains unclear if writers and hundreds of
Maryland-based crew are being kept on the payroll as executives decide on the
fate of the sixth season.
MRC would be on the hook for whatever expenses have to
be absorbed as production on "House of Cards" is shut down, though
the company could have insurance to cover such events.
"House of Cards" is estimated to cost
several millions of dollars per episode, with each season consisting of 13
installments.
MRC sold the international rights for "House of
Cards" to Netflix in a deal estimated to be worth more than $200 million,
according to one industry executive familiar with the show.
Even if Netflix emerges relatively unscathed from
“House of Cards,” the streaming service faces another challenge with an
upcoming movie it is making with Spacey, in which he plays the late writer Gore
Vidal.
The movie, which had been expected to be released next
year, is believed to focus on the years that Vidal spent in virtual exile in
Italy. Netflix said Friday night that it will not release the film.
Netflix rival Amazon Studios confronted its own
scandal last month when Roy Price resigned as head of the studio after
accusations made by an executive producer that Price had made lewd remarks and
unwanted advances.
Don't forget to Like us on Facebook
