Netflix Cancellations Spiked After Reed Hastings Donated to Kamala Harris

Rate of cancellations almost tripled after Trump backers called for action against the streaming service.
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Netflix Cancellations Spiked After Reed Hastings Donated to Kamala Harris
Rate of cancellations almost tripled after Trump backers called for action against the streaming service.

Reed Hastings, co-founder and chairman of Netflix Inc.
Reed Hastings, co-founder and chairman of Netflix Inc.Photographer: Kyle Grillot/Bloomberg
By Lucas Shaw
September 29, 2024 at 11:10 PM GMT+1

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Say goodbye to another tough week in Hollywood. Disney cut about 300 jobs. Paramount implemented its second round of layoffs in the last few weeks. And John Malone, the godfather of cable, said streaming is a crappy business.

While things are likely to get worse before they get better, the long-term outlook for the entertainment business is still quite bright. I explained why in an essay for the latest issue of Businessweek: The Case for Optimism in Entertainment.

The essay is part of a special section devoted to all things Screentime, including one of the most powerful executives in gaming, a profile of the host of Hot Ones and a list of rising stars across pop culture.

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This will double as your final reminder about the Screentime conference, which is less than two weeks away. We’ve only got a couple dozen tickets left. Get one before we’re sold out. If you have any tips or questions, reach out at lshaw31@bloomberg.net or message me on Signal.

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Netflix cancellations spiked after Reed Hastings donated to Kamala Harris
Netflix suffered a surge in cancellations in the days after its co-founder and chairman, Reed Hastings, endorsed Kamala Harris for president and donated millions to her campaign.

The rate of cancellations – churn in industry parlance – nearly tripled in the US after his endorsement, according to the researcher Antenna. The streaming giant has the lowest churn in the industry.

Customers in the US canceled Netflix at a higher rate in July — 2.8% — than any month since February. That is largely due to the company’s decision to phase out its basic tier. Basic was the cheapest advertising-free version of Netflix. But the five-day period after Hastings’ endorsement was unusual, even for July.

Hastings, a longtime Democratic donor, endorsed Harris in a post on the social media platform X on July 22. A day later, Hastings told The Information that he donated $7 million to a pro-Harris super PAC. Shortly after Hastings’ endorsement, fans of Donald Trump began urging people to drop the service. Some posted photos showing they had closed their accounts alongside the hashtag #CancelNetflix. Three days later after the donation became public, July 26, was the single worst day for Netflix cancellations this year.