The number of Netflix account cancellations increased after co-founder and chairman Reed Hastings endorsed Vice President Kamala Harris and donated millions to her presidential campaign, according to a report.
Although streaming platforms typically have the lowest churn – or cancellation rates – in the industry, their rates have nearly tripled in the US following Hastings’ support, according to researcher Antenna.
A large number of subscribers in the US canceled their Netflix subscriptions in July, at a rate of 2.8%, higher than any other month since February. According to a Bloomberg report,
Subscribers may have had their accounts locked en masse due to the streaming giant scrapped its original plan – which was its lowest priced ad-free option – in the same month.
Still, cancellations increased unusually in the five-day period following Hastings’ endorsement, even considering the spike in July, the report said.
“Congratulations to Kamala Harris – now is the time to win,” Hastings. Wrote in a post on X After Harris officially became the Democratic nominee on July 22.
Then, reported information Hastings donated $7 million to an anti-Donald Trump Republican PAC in support of Harris.
Trump supporters condemned the donation and took to social media to call for a boycott. Some online users falsely claimed that Netflix itself had donated millions to Harris.
Frustrated customers posted photos of their canceled accounts online with the hashtag #CancelNetflix.
According to Bloomberg, three days after the donation was made public – July 26 – was Netflix’s worst day for cancellations this year.
Netflix did not immediately respond to requests for comment.
It’s unclear what — if any — substantial long-term impact the cancellation will have on Netflix’s business.
But the short-lived Netflix boycott is reminiscent of social media-led campaigns against companies with DEI initiatives.
Conservative activist Robbie Starbuck He has pressured many companies to abandon their DEI practices by calling on his hundreds of thousands of followers to boycott businesses.
Their targets include companies that rely on significant consumer bases in red states, including Ford, Harley-Davidson, John Deere and Tractor Supply.
Many companies – including those in the entertainment industry – rushed to implement diversity initiatives following the killing of George Floyd and the subsequent Black Lives Matter movement in 2020.
Netflix fulfilled its pledge in 2020 Transfer 2% of your cash to black-owned banks,
In June 2020, Hastings and his wife, Patty Quillin, Donated 120 million dollars For historically black colleges and universities.
But some companies in the industry faced opposition when their initiative turned into politics. Florida Governor Ron DeSantis clashes with Disney After the company criticized a law banning the discussion of gender identity in classrooms.
Netflix’s skyrocketing cancellation rate is the latest political damage suffered by an entertainment company.
Hastings – who co-founded Netflix in 1997 and will step down as CEO in 2023 – has donated billions to philanthropic causes over the years. He has also long donated to Democratic and some Republican candidates and PACs.
He has been vocal about this year’s upcoming election, one of the biggest in the election — and was one of the first Democratic donors to call on President Biden to drop out of the race in July.
He then said, “Biden must step aside to allow a strong Democratic leader to defeat Trump and keep us safe and prosperous.” told the New York Times Through email.
