'House of Cards' Producer Dana Brunetti Calls Netflix "Overvalued"
"And I'm also talking about people that I work with, so I got to be careful," Brunetti, who's also the president of Relativity Media, which has been in a legal dispute with Netflix, told CNBC.
House of Cards executive producer Dana Brunetti revealed to CNBC in an interview posted online Tuesday that he was short on Netflix's stock.
"That space is really going to get crowded," Brunetti said during an interview on CNBC about the media landscape.
The producer of The Social Network and Fifty Shades of Grey pointed to stepped-up competition in the streaming space for Netflix from new rivals like Amazon Prime and Hulu. "In the long run, it's getting a bit overvalued. And I'm also talking about people that I work with, so I got to be careful," he added about Netflix.
Brunetti is known for his unfiltered take on Hollywood, criticizing the stars of Fifty Shades for wanting pay raises. But the CNBC comments reached a whole new level of candor. After all, Brunetti's House of Cards has been one of Netflix's biggest hits, recently capping off its fourth season. But there's certainly bad blood between Netflix and Brunetti's employer, Relativity Media, where Brunetti serves as president.
Relativity recently engaged in a legal dispute with Netflix over the terms of the streaming service's deal to distribute its films. And CEO Ryan Kavanaugh has been critical of Netflix's legal maneuverings to get out of its contract with Relativity, one that favors Relativity. In January, Kavanaugh lashed out at Netflix, saying Netflix suffers from what everyone used to call 'Yahoo syndrome.'” He accused the streaming service of getting “cocky and too big for their own britches.”
Netflix's stock continued to fall Tuesday after the company's second quarter results revealed a major subscriber miss.
Netflix CEO Reed Hastings in an analyst call Monday argued slowing subscriber growth during the latest financial quarter was not due to increased competition, but instead churn, or existing customers quitting over higher prices imposed by Netflix. Shares in Netflix on Tuesday traded down $13.77, or 14 percent, at $85.03 on the NASDAQ Exchange.
Kavanaugh earlier this year recruited actor Kevin Spacey and producer Brunetti to run Relativity's film and scripted TV business as it emerged from bankruptcy. Relativity acquired Trigger Street, the production studio that Spacey and Brunetti had run since 1997.
Spacey later bowed out.