Netflix experienced a surge in cancellations after co-founder Reed Hastings disclosed a $7 million donation to Vice President Kamala Harris' presidential campaign.

The five-day period following the Harris endorsement announcement saw the most significant drop in subscriptions, with July 26 marking the highest number of cancellations in 2024, as Fox Business reports.

The spike in cancellations, almost tripling in the U.S., followed a call from supporters of former President Donald Trump to cancel Netflix subscriptions in protest of Hastings’ endorsement.

This movement on social media, particularly on X, the platform formerly known as Twitter, highlighted the backlash against Hastings, a longtime Democratic Party donor.

July Cancellations Reach Record Levels

According to data provided by the market research firm Antenna, Netflix’s cancellation rates in July were the highest since February 2024. The platform’s decision to phase out its most affordable plan also contributed to the increase in cancellations. However, the unprecedented five-day period of cancellations stood out, with the peak arriving on July 26, three days after Hastings' donation was revealed.

The timing of Hastings' announcement, just days before this record-setting cancellation day, appears to have played a pivotal role in the drastic subscriber decline. The data suggests that the combination of Hastings' political support and Netflix's pricing changes may have created a perfect storm for dissatisfied subscribers.

Political Reaction Intensifies Subscriber Loss

Following Hastings’ endorsement of Harris, Trump supporters publicly encouraged conservatives to cancel their Netflix subscriptions, with this call for action gaining traction across social media platforms. The endorsement was seen as a key moment in intensifying opposition among Netflix's more politically conservative users.

Hastings, known for his support of Democratic Party causes, has a history of making significant donations to political campaigns. This latest $7 million contribution to Harris comes in a long line of political endorsements, with previous contributions including efforts to block the recall of California Gov. Gavin Newsom in 2021 and San Francisco District Attorney Chesa Boudin in 2022. In 2018, he also backed a political action committee supporting Antonio Villaraigosa against Newsom during the California gubernatorial race.

Hastings Calls for Biden to Step Down

Hastings’ donation to the Harris campaign was preceded by his outspoken belief that President Joe Biden should step aside for a new Democratic Party leader. In a public post, Hastings commented, "Biden needs to step aside to allow a vigorous Democratic leader to beat Trump and keep us safe and prosperous." His call for change at the top of the Democratic ticket added further fuel to the early days of the political firestorm.

The political nature of Hastings’ comments, paired with his substantial financial backing of Harris, likely amplified the response from Netflix subscribers who opposed his stance. This culminated in a significant loss of subscribers, the full impact of which may not be fully understood until Netflix releases its next financial report in October.

Pricing Changes Add to Subscriber Woes

Adding to the political controversy was Netflix’s simultaneous decision to phase out its lowest-priced subscription option. This pricing change, unrelated to the political landscape, nevertheless contributed to the overall dissatisfaction among subscribers, leading some to cancel their memberships.

While the five-day cancellation spike following Hastings' announcement stands out, it is still unclear how much of the long-term subscriber loss can be attributed to his political endorsement versus the pricing adjustments.

Netflix Faces Uncertainty Ahead of October Report

The long-term effects of the July cancellations remain to be seen, as Netflix has yet to release financial data that would reveal whether subscriber losses continued beyond the five-day period. The company’s next earnings report, expected in October, will provide greater insight into the impact of Hastings' donation and the broader public response.

This period has marked a notable challenge for Netflix, particularly in light of the growing competition within the streaming market. The combination of political backlash and pricing changes may have led the platform into uncharted territory as it navigates subscriber losses and public scrutiny.

Hastings' Political Contributions Under Scrutiny

Hastings' history as a significant Democratic donor continues to be a focal point in discussions about his influence on public opinion. His 2021 contribution of $3 million to support Gov. Gavin Newsom and his wife's 2022 donation to stop the recall of San Francisco DA Chesa Boudin are among the many examples of the couple's political involvement.

Although Hastings' most recent $7 million donation to Harris' presidential campaign marks his largest contribution to date, it has also sparked the most immediate and measurable backlash, as evidenced by the subscriber losses at Netflix. It remains to be seen how this political engagement will affect his standing among Netflix subscribers and the broader public.

Conclusion

In conclusion, Netflix saw its highest day of cancellations in 2024 following co-founder Reed Hastings’ $7 million donation to Vice President Kamala Harris' campaign.

This surge, occurring within a five-day window, was exacerbated by calls from conservative groups to cancel subscriptions and by Netflix’s decision to phase out its most affordable plan.

As Hastings continues his political contributions, the full impact on Netflix’s subscriber base will likely become clearer in the coming months.