It’s no secret that the world of entertainment is competitive. From sports to music to television to film, there is competition at every turn. With the introduction of innovative tech startups, competition is only likely to ramp up. As a result, things can get ugly really quickly. We see things get ugly in sports with free agent tampering allegations. We see things get ugly in the tech world with former employees attempting to steal tech secrets from their former employers. Today, the competitive side of the content business has inched into an ugly territory.
According to multiple reports, Viacom is preparing to file a lawsuit alleging that Netflix is knowingly interfering with contracts from the MTV parent company. The suit is attempting to explore the legality of fixed term employment contacts.
By suing the streaming service, Viacom joins Fox as the second major company to sue Netflix for interference. Earlier this year, Fox launched a lawsuit against Netflix for taking two of its top executives. This summer, courts gave Netflix the ability to file counter claims against Fox that allege the company was offering employees “take it or leave it” deals.
The dispute between Netflix and Viacom is believed to be centered around production executive, Momita Sengupta, who left Viacom earlier this year. Given the similarities between the two suits against Netflix, the two suits may be consolidated. However, this matter does not signal anything positive for Netflix going forward. Stay tuned for more details as this matter unfolds.
