Review of: Netflix Faces Major Backlash, Customer Cancellations After Chairman Endorses Kamala Harris

I don't know who this is. Woman speaking at a podium.

Netflix faces a surge in cancellations after chairman Reed Hastings endorses Kamala Harris and makes a substantial donation to her campaign.

At a Glance

  • Netflix account cancellations surged after co-founder Reed Hastings endorsed Vice President Kamala Harris and donated millions to her campaign.
  • Netflix’s churn rate nearly tripled in the US following Hastings’ endorsement.
  • July 26 marked Netflix’s worst day for cancellations in 2023.
  • The hashtag #CancelNetflix trended as frustrated subscribers posted about their cancellations.
  • Trump supporters called for a boycott of Netflix, falsely claiming the company donated to Harris.

Netflix’s Political Endorsement Backfires

Netflix faced significant backlash after its chairman, Reed Hastings, publicly endorsed Vice President Kamala Harris for president and donated $7 million to a super PAC supporting her. This resulted in a notable increase in customer cancellations, particularly among supporters of former President Donald Trump. Hastings’ endorsement and substantial donation have highlighted the risks companies face when corporate leaders engage in political activism.

Political Activism and Its Consequences

Following Hastings’ public support and monetary contribution to Harris’ campaign, the churn rate for Netflix nearly tripled, with over 277 million subscribers as of June 30, 2024. Many Trump supporters called for a boycott and falsely claimed that Netflix, as a company, had donated to Harris. The hashtag #CancelNetflix quickly trended, exacerbating the situation as subscribers openly shared their reasons for leaving the platform.

“Congrats to Kamala Harris—now it is time to win.” stated Hastings

Similar to other social media-led boycotts, such as those targeting companies with Diversity, Equity, and Inclusion (DEI) initiatives, the response was both swift and considerable. Conservative activist Robby Starbuck has led various boycotts against companies embracing DEI practices, drawing attention to the delicate intersection between corporate practices and political sentiments among consumers.

Long-Term Impact and Future Outlook

The long-term impact of this backlash on Netflix’s business remains uncertain. The spike in cancellations coincided with the discontinuation of Netflix’s basic ad-free plan, further complicating the company’s position. Though the immediate surge in cancellations has returned to normal after July 29, the overall fallout includes potential reputational damage and a reevaluation of how political stances by executives can impact business operations significantly.

Hastings, who stepped down as chairman in January 2024, has a history of donating to both Democratic and Republican candidates. He has been vocal about his political views, recently calling for President Biden to step aside for a stronger Democratic candidate. These comments add another layer of complexity to the interplay between corporate leadership and consumer response.

While Netflix continues its quarterly financial assessments, the streaming giant must navigate the repercussions of this recent backlash carefully. The Q3 2024 results, to be announced on October 17, will provide further insights into how these events have affected the company’s bottom line and market standing.

Sources:

  1. Netflix cancellations nearly tripled after co-founder Reed Hastings endorsed Kamala Harris: report
  1. Netflix Cancellations Nearly Tripled After Chairman Reed Hastings Endorsed Kamala Harris
  1. Netflix Cancellations Spiked After Reed Hastings Donated to Kamala Harris
  1. Netflix saw highest day of cancellations this year after co-founder’s $7M donation to Harris campaign: report
  1. Netflix cancellations nearly tripled in the US after co-founder Reed Hastings endorsed Kamala Harris: Report
  1. Netflix Hit with Wave of Cancellations After Reed Hastings Donation to Kamala Harris
  1. Netflix’s CEO backed Kamala Harris. Cancellations quickly surged
  1. Netflix cancellations soar following Hastings’ political pronouncement
  1. MAGA Switches Off Netflix After Chairman Donates to Harris Campaign
  1. Netflix cancellations nearly tripled after co-founder Reed Hastings endorsed Kamala Harris: report