Netflix saw a significant uptick in cancellations following co-founder Reed Hastings’ public endorsement of Vice President Kamala Harris in July. According to industry data, the streaming giant’s churn rate, or cancellation rate, nearly tripled in the days following Hastings’ political stance, marking one of the highest spikes in subscriber loss the company has seen this year.
Political Endorsement Sparks Backlash
The surge in cancellations came shortly after Hastings posted on X (formerly Twitter) on July 22, expressing his support for Harris’ election campaign. Hastings, who has been an outspoken Democratic donor, revealed that he contributed $7 million to an anti-Donald Trump Republican political action committee in support of Harris. The endorsement led to a flood of calls from Trump supporters for a boycott of Netflix, with the hashtag #CancelNetflix trending across social media platforms.
Some users falsely accused Netflix itself of donating to Harris’ campaign, further fueling the outrage. The backlash culminated on July 26, which became the single worst day for Netflix cancellations in 2023, just three days after Hastings’ donation became public.
Underlying Factors Behind the Spike
While the political endorsement certainly played a role, the increase in cancellations can also be attributed to Netflix’s controversial decision to phase out its basic, ad-free plan. The company’s move to push users towards higher-tier plans also sparked dissatisfaction, contributing to the higher churn rate. However, the five-day surge following Hastings’ endorsement was notably unusual, even for a period of subscriber adjustments.
Hastings’ Political Influence
Hastings, who co-founded Netflix in 1997 and stepped down as CEO in 2023, has been an active voice in recent political discourse. Earlier in the year, he called for President Joe Biden to step aside, advocating for a stronger Democratic candidate to face Donald Trump in the upcoming election. Hastings has long been a critic of Trump, famously declaring in 2016 that Trump would “destroy much of what is great about America.”
Netflix’s History of Political Stances
This isn’t the first time Netflix has faced public backlash due to political statements. In 2020, the company committed to moving 2% of its cash reserves into Black-owned banks following the George Floyd protests and the rise of the Black Lives Matter movement. While such moves have garnered both support and criticism, Hastings’ latest endorsement seems to have triggered an especially sharp response from a specific segment of the streaming platform’s user base.
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