A recent report indicates that Netflix encountered a substantial increase in cancellations as a result of a $7 million donation by co-founder Reed Hastings to support Vice President Kamala Harris’ presidential campaign. Bloomberg, citing data from Antenna, a subscription analytics firm, reported that the cancellation rate in the United States nearly tripled immediately after Hastings’ donation became public..
The highest single day for Netflix cancellations in 2024 was July 26, which occurred in late July, when the surge in cancellations occurred. The timing was in accordance with Hastings’ public endorsement of Harris on social media, which prompted demands from supporters of former President Donald Trump for conservatives to cancel their subscriptions to the streaming platform.
Netflix had recently announced the phase-out of its lowest-cost subscription plan, which may have contributed to the increase in cancellations, in addition to the political controversy. Nevertheless, the report emphasizes that the cancellation surge that occurred subsequent to Hastings’ endorsement was particularly unusual.
Hastings, a seasoned Democratic donor, has made substantial political contributions in the past, such as $3 million to a campaign opposing the recall of California Governor Gavin Newsom and donations to organizations that advocate for liberal causes in San Francisco.
Although it is uncertain whether the cancellations will have an enduring effect on Netflix, the platform’s financial performance for the third quarter will be reported in October, which may offer additional insights. Netflix and Hastings declined to provide any commentary regarding the matter.