In 2018, amidst the streaming boom, Netflix invested heavily in a sci-fi series project led by filmmaker Carl Erik Rinsch, committing over $55 million to the endeavor. However, what followed was a series of missteps, erratic behavior, and financial mismanagement on Rinsch’s part, leaving Netflix entangled in a costly and contentious arbitration proceeding.
Here’s a breakdown of the events:
- Carl Erik Rinsch: Rinsch, a talented filmmaker, had previously directed “47 Ronin,” which proved to be a commercial and critical failure. Despite this setback, he embarked on a new project, a sci-fi TV series called “Conquest” (formerly “White Horse”), centered around artificial humans.
- Competitive Bidding: Rinsch’s pitch for “Conquest” garnered interest from major streaming platforms, including Amazon, HBO, Hulu, Netflix, Apple, and YouTube. Netflix ultimately secured the rights to the series in a deal valued at $61.2 million, offering Rinsch an unusual perk – final cut authority.
- Production Issues: As production of “Conquest” began, issues surfaced. In São Paulo, Rinsch was accused of mistreating the crew, leading to intervention by the local film industry union. In Budapest, he exhibited erratic behavior, accusing his wife of plotting against him and displaying signs of distress.
- Personal Troubles: Rinsch’s behavior raised concerns even before the international shoots. His wife, Gabriela Rosés Bentancor, cited instances of violence in court filings related to their divorce. Rinsch claimed to be diagnosed with autism and ADHD, taking medications for both conditions. Concerns arose about his use of Vyvanse, an amphetamine used to treat ADHD.
- Financial Mismanagement: In March 2020, during the early days of the COVID-19 pandemic, Rinsch requested additional funding from Netflix. Despite initial resistance, Netflix provided an $11 million cash injection, totaling over $55 million in funding. Rinsch used a significant portion of this money for high-risk investments in the stock market and cryptocurrencies, resulting in substantial losses.
- Crypto Windfall: Unexpectedly, Rinsch’s crypto investments paid off, yielding nearly $27 million when he liquidated his dogecoin holdings in May 2021.
- Lavish Spending: Rinsch embarked on a lavish spending spree, purchasing luxury cars, high-end furniture, and designer clothing, amounting to $8.7 million in expenses.
- Legal Dispute: Rinsch’s spending raised suspicions that he was attempting to conceal his crypto winnings. While he initially claimed these purchases were for the “Conquest” project, he later argued in confidential arbitration filings that the money was contractually his. Netflix disputes this, citing missed production milestones.
- Arbitration Proceedings: Rinsch initiated confidential arbitration proceedings against Netflix, claiming breach of contract and demanding over $14 million in damages. Netflix contends that Rinsch failed to meet production milestones and owes the company funds.
The arbitration case remains ongoing, with a ruling expected soon.
This costly fiasco underscores the challenges streaming platforms face in their quest for exclusive content and the potential risks involved when investing in creative projects led by individuals with personal and financial issues. It serves as a cautionary tale within the entertainment industry.
