Netflix Faces Backlash as Subscribers Cancel Amidst Political Controversy

Netflix experiences a surge in subscription cancellations after co-founder Reed Hastings' political donation supporting Kamala Harris' campaign, drawing criticism from conservative groups.

Netflix is experiencing significant backlash as subscription cancellations have spiked following co-founder Reed Hastings' $7 million donation to Vice President Kamala Harris' presidential campaign. The political contribution drew criticism from conservative groups, triggering many to vow to cancel their subscriptions in protest of Hastings' public endorsement. According to Bloomberg, cancellations nearly tripled after the announcement, with former President Trump's supporters actively promoting a boycott on social media. July 26 became the worst day for Netflix in terms of cancellations, coinciding with the political fallout. Compounding the issue, Netflix had already faced criticism for eliminating its cheapest subscription tier, a move likely contributing to some cancellations. Hastings' support for a Harris super PAC highlights the complexities of consumer behavior where corporate actions and political affiliations influence purchasing choices. With heightened competition in the streaming market, Netflix finds itself pressured to recover amid political and economic challenges, with its ability to withstand this crisis still uncertain.