Labor & Employment » Hollywood Studio Sues Netflix For Aggressive Hiring

Hollywood Studio Sues Netflix For Aggressive Hiring

December 6, 2016

San Diego, California, USA - March 21, 2011: A closeup of a movie or TV show buffering on a computer through Netflix's "Watch Instantly" service, which allows users to stream content directly to their computer or TV through the internet.

Netflix has disrupted the traditional Hollywood studio structure, but its growth in original programming has sent it in search of experienced executives. The streaming service’s hiring tactics are so aggressive they’ve drawn a legal response from21st Century Fox. In a suit filed in Los Angeles Superior Court, lawyers for Fox wrote that Netflix is engaged in, “a systematic, targeted campaign,” and has poached several Fox employees in recent months, including two executives who were bound by fixed-term employment contracts. Fox is seeking damages and an injunction against the streaming site to stop its practices. Netflix responded with a filing saying Fox’s employment contracts aren’t enforceable because they impede employee mobility and stifle competition for skilled employees, in violation of the California Business and Professions Code. Fox argues that if the request is granted an influential precedent could be set that would reverberate beyond film and television.

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