Netflix suffered a sudden increase in subscription cancellations in the United States following the public announcement of the support of Reed Hastings, the company’s co-founder and chairman of the board, for Kamala Harris’ candidacy for office. the presidency. On July 22, Hastings posted a message on X (formerly Twitter) to announce his support for the Democratic candidate, and revealed the next day that he had donated $7 million to a political action committee in her favor.
Temporary increase in cancellations
According to research firm Antenna, the subscription cancellation rate nearly tripled in the United States in the days following the announcement. If Netflix traditionally has the lowest churn rate in the sector, the situation at the end of July caused a sudden drop. On July 26, three days after the announcement of Reed Hastings’ donation, Netflix recorded its worst day of cancellations of the year.
Hastings’ support for Harris sparked immediate backlash from Donald Trump supporters, who used the hashtag #CancelNetflix to encourage conservative subscribers to unsubscribe from the platform. Many users shared screenshots showing their accounts being closed, helping to amplify the movement.
This increase in unsubscriptions only lasted a few days, and it did not reach the scale of the reaction against Netflix in 2020, when a controversy erupted around the French film Cute (Cuties). At the time, several conservative groups accused the film of exploiting children and called for a boycott of the platform. This movement also caused a wave of cancellations. However, the long-term impact of recent cancellations on Netflix remains unclear.
In addition to this political support, other factors influenced Netflix’s churn numbers in July. The company had, in fact, decided to remove its basic ad-free package, the most affordable plan for subscribers, which contributed to an increase in monthly unsubscriptions to 2.8%, the highest rate since February.
While Netflix has refrained from commenting on this matter, the management of its executives’ political positions raises questions about how the company maintains a balance between the diverse points of view of its subscribers. Traditionally, Netflix has attempted to separate Hastings’ political commitments from its business activities, with the company recognizing the importance of appealing to customers from all walks of life. With predominantly left-leaning employees and management, the company must manage its relationship with the conservative public.
Netflix’s situation is not unique in the entertainment industry. Other companies, such as Walt Disney, have also faced political backlash following public stances. Disney thus engaged in a standoff with Florida Governor Ron DeSantis after criticizing a law limiting the discussion of sexual orientation and gender identity in schools.
For his part, Reed Hastings is a noted philanthropist, having devoted billions to educational and social causes. However, his recent political positions, such as his public appeal to Joe Biden to give up running again this year, demonstrate his involvement in the electoral debate.
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