Netflix Faces Some Backlash After Decision
Netflix found itself at the center of a political firestorm after co-founder Reed Hastings made headlines with a $7 million donation to a super PAC supporting Vice President Kamala Harris’ presidential campaign.
According to a report from Bloomberg, the streaming giant saw a dramatic spike in cancelations across the United States following Hastings’ hefty endorsement. Research firm Antenna noted that subscription cancelations nearly tripled in the days after Hastings publicly announced his donation in July, a reaction that sent shockwaves through both the political and entertainment sectors.
The backlash was swift, particularly from supporters of former President Donald Trump, who called on conservatives to cancel their Netflix subscriptions in protest. And they didn’t waste time. In fact, July became Netflix’s worst month for cancelations since February 2024, with a notable surge in the five days following Hastings’ donation. The single worst day for cancelations? July 26—just three days after Hastings revealed the contribution on X (formerly Twitter).
While Netflix’s decision to phase out its cheapest subscription option was already causing unrest among users, Hastings’ political move seemed to ignite a much broader reaction. The timing of the donation, paired with Netflix’s subscription changes, created a perfect storm. According to Bloomberg, Hastings’ contribution stood out as the primary driver for that five-day spike, even in a month that had already been tumultuous for the streaming platform.
Congrats to Kamala Harris — now it is time to win
— Reed Hastings (@reedhastings) July 23, 2024
This isn’t Hastings’ first foray into political donations, but it’s one of the most publicized. A longtime Democratic donor, Hastings had previously made waves by encouraging President Joe Biden to step aside for the sake of the party. In an email obtained by the New York Times, Hastings wrote, “Biden needs to step aside to allow a vigorous Democratic leader to beat Trump and keep us safe and prosperous.” His sizable support for Harris signals a clear preference for who he believes should take the reins in 2024.
The donation also fits a pattern for Hastings, who, along with his wife, Patty Quillin, has been a significant contributor to Democratic causes, particularly in California. The couple donated $3 million in 2021 to oppose a recall effort against California Governor Gavin Newsom. They’ve been involved in a range of other left-wing efforts, including donations to campaigns aimed at protecting liberal district attorneys and supporting charter schools.
However, this time, the political donation has created tangible consequences for Netflix. While it’s unclear if the spike in cancelations will have a lasting effect on the platform’s bottom line, all eyes are on Netflix’s next financial report, set to be released in October. Whether this political backlash will be a temporary bump in the road or something that impacts the company long-term remains to be seen.
As for Hastings, both he and Netflix have remained tight-lipped in the wake of the cancelation surge. Neither responded to requests for comment from Fox News Digital, leaving subscribers and political observers alike wondering if the company plans to address the fallout—or simply ride it out.