"We don't believe these proposed new policies—particularly around the size and speed of membership growth—will tackle the HFPA's systemic diversity and inclusion challenges, or the lack of clear standards for how your members should operate," Sarandos said in a letter to the HFPA's Leadership Committee obtained by NPR.
"So we're stopping any activities with your organization until more meaningful changes are made."
Amazon Studios has also given the HFPA the change-or-else ultimatum.
"We have not been working with the HFPA since these issues were first raised, and like the rest of the industry, we are awaiting a sincere and significant resolution before moving forward," Jennifer Salke, who heads the studio, said in a statement according to The Hollywood Reporter.
And in another devastating blow to the beleaguered organization, WarnerMedia on Sunday said it too is no longer engaging with the HFPA.