Netflix Inc. is threatening to stream two films produced by Relativity Media LLC before their debut in theaters, a move the Hollywood studio says could prove devastating as it seeks to regain its footing after emerging from bankruptcy protection, the Wall Street Journal reported today. Relativity, the upstart movie studio founded by Ryan Kavanaugh that recently exited chapter 11, says that the two films — a comedy starring Kristen Wiig called “Masterminds” and a thriller with Kate Beckinsale called “The Disappointments Room” — are key elements in its nascent comeback. A premature release of the films on Netflix’s streaming service could torpedo plans for the theatrical release, Relativity’s lawyers say, and leave the studio’s future hanging in the balance. In court papers filed over the weekend, Relativity said that the streaming giant is attempting to “extract a pound of flesh” after a bankruptcy judge rejected Netflix’s objections to the studio’s reorganization plan.
