This is the shocking story of how a film production company, funded by Netflix, gambled away its entire budget on risky financial bets and left the streaming giant with nothing to show for it.
The company, called Red Flag Productions, was supposed to make a comedy movie starring Kevin Hart and Tiffany Haddish, based on a popular book by Steve Harvey. The movie, titled “Think Like a Man Too”, was expected to be a hit with audiences and critics alike.
However, instead of spending the money on hiring actors, writers, directors and crew, the company’s executives decided to invest it in the stock market, hoping to make a quick profit and pay back Netflix later. They used a complex and risky strategy called “options trading”, which involves buying and selling contracts that give the right to buy or sell a stock at a certain price in the future.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Unfortunately for them, their bets went horribly wrong. The stock market crashed in 2023 due to the global pandemic and political instability, and the company lost all of its money in a matter of days. Netflix was furious when they found out what had happened and sued the company for breach of contract and fraud. The lawsuit is still ongoing, but it is unlikely that Netflix will ever recover its money.
The movie project was cancelled and the rights to the book were returned to Steve Harvey, who said he was “disappointed and disgusted” by the whole ordeal. Kevin Hart and Tiffany Haddish also expressed their frustration and anger at being duped by the company. They said they had been looking forward to working together on the movie and had turned down other offers because of it.
Netflix have invested in several film project in Nigeria
Netflix, the world’s leading streaming service, has been expanding its presence in Africa, especially in Nigeria, where it has invested in several film projects. Nigeria’s film industry, known as Nollywood, is one of the largest and most prolific in the world, producing thousands of movies every year. Netflix has recognized the potential of Nollywood and has partnered with local filmmakers, actors and producers to create original content for its platform.
Some of the Netflix original films from Nigeria include Lionheart, a comedy-drama directed by and starring Genevieve Nnaji, one of the country’s most popular actresses; The Wedding Party, a romantic comedy that was the highest-grossing Nigerian film of all time; and King of Boys, a crime thriller that received critical acclaim and awards. Netflix has also acquired the rights to stream other Nollywood films, such as Half of a Yellow Sun, based on the novel by Chimamanda Ngozi Adichie; and October 1, a historical drama set during Nigeria’s independence.
Netflix’s investment in Nigerian films is part of its strategy to diversify its content and cater to different audiences around the world. The streaming service has also produced original films and shows from other African countries, such as South Africa, Kenya and Zimbabwe. Netflix has also launched a mobile-only plan in Nigeria and other African markets, offering a cheaper and more accessible option for subscribers who use their smartphones to watch content.
Netflix’s involvement in Nollywood has been welcomed by many in the industry, who see it as an opportunity to showcase their work to a global audience and to improve the quality and standards of their productions. Netflix has also provided training and workshops for Nigerian filmmakers, as well as funding and equipment. However, some challenges remain, such as the lack of infrastructure, piracy and censorship issues, and the competition from other streaming platforms and local TV channels.
Netflix’s investment in Nigerian films is a sign of the growing importance and influence of Nollywood in the global film industry. It is also a testament to the creativity and talent of Nigerian filmmakers, who have been telling stories that resonate with audiences across cultures and continents.
The scandal has tarnished the reputation of Netflix as a reliable partner for filmmakers and has raised questions about its oversight and due diligence processes. It has also exposed the dangers of options trading, which can lead to huge losses or gains depending on market fluctuations. Many experts have warned that options trading is not suitable for beginners or amateurs and should only be done by experienced and professional investors.