Relativity argues how the streaming service then attempted to renegotiate their initial contract – which saw Netflix pay out between $100 million to $300 million a year to show Relativity films – leading to others in the industry to question their contracts with the studio, leading to a fall in profits.
There’s currently a rather large lawsuit being filed against Netflix by Relativity Media, claiming the streaming service giants owe the production company “in excess” of $1.5 billion.
The lawsuit contends that Relativity helped Netflix become the industry giant it is today, arguing: “In choosing Netflix as its pay television or SVOD partner, Relativity single-handedly converted Netflix from a DVD mail-order company into a pay television business.”
In short, Relativity Media claim Netflix broke the agreed upon contract and committed “trade libel” by suggesting the studio’s recent films should be released on Netflix before hitting cinemas, according to Variety.