Elon Musk stands within the Oval Workplace to attend a press occasion with U.S. President Donald Trump, on the White Home in Washington, D.C., U.S., Could 30, 2025.
Nathan Howard | Reuters
Elon Musk this week urged his followers to cancel their Netflix subscriptions over an issue surrounding an animated present and its creator.
Musk on Wednesday posted on his X platform saying, “Cancel Netflix for the well being of your children.” The publish was in response to a picture accusing Netflix of finishing up a “transgender woke agenda.”
The controversy appears to stem from conservative backlash over an animated Netflix present, “Lifeless Finish: Paranormal Park,” which encompasses a transgender character. The present was canceled in 2023 after two seasons.
Along with a number of anti-trans posts, Musk additionally responded to a publish criticizing alleged statements made by the present’s creator, Hamish Steele, {that a} distinguished conservative X account stated “mocked” the homicide of conservative activist Charlie Kirk.
Steele responded to Musk’s callout on rival social media platform Bluesky saying, “It is most likely going to be a really odd day.” Steele additionally shared a publish by TV author Jack Bernhardt that referred to as “Lifeless Finish” a “sensible present about sort, great characters.”
Additionally this week, vocal conservative activist Robby Starbuck started posting about Netflix, echoing anti-trans sentiments and arguing the corporate has promoted an ideology that’s “hateful to White Individuals.” Starbuck, who has repeatedly focused main companies in current months over variety, fairness and inclusion efforts, stated in one in all his X posts on Netflix, “Nobody ought to give this woke firm one other dime.”
Netflix didn’t reply to requests for remark from CNBC.
Analysts say the backlash won’t pose as large of a menace to Netflix as Musk could also be hoping for.
Netflix reported 301.63 million subscribers as of the fourth quarter of 2024, the final time it reported the metric earlier than shifting precedence to income over consumer development. The corporate has a roughly $490 billion market cap, and its inventory is up greater than 60% prior to now 12 months.
Shares misplaced practically 5% over the week.
“Is that going to maneuver the needle essentially? … You are going to see folks enroll on the again of that to counter it,” CNBC contributor Man Adami stated Wednesday on “Quick Cash.”
“I do not assume it is a purpose to promote the inventory,” he added.
Wedbush Securities’ Alicia Reese informed CNBC that the feedback got here too late within the third quarter to make any significant impression on subscriber counts.
Nonetheless, she stated she believes the backlash will not make a significant dent and that any impression can be offset by a rise in advert income.
“Their numbers ought to come out simply wonderful,” Reese stated. “I feel that shares have not been hit too exhausting.”
Seymour Asset Administration’s Tim Seymour stated although a day of headlines could transfer the inventory round, Netflix shares are in the end too costly to be considerably affected by web backlash.
“We have had these moments in time the place, whether or not it was an advert marketing campaign that went incorrect or whether or not it was some sense that an organization was aligned in a specific political channel… I do not assume that that is going to be the explanation to promote Netflix right here,” Seymour stated Wednesday.
The requires a boycott mirror these in opposition to Anheuser-Busch InBev in 2023 after it launched an advert marketing campaign with transgender influencer Dylan Mulvaney. However the boycott of Bud Gentle, CNBC contributor Karen Finerman famous on Wednesday, yielded “far larger” destruction than some other current examples.
“I really feel like this can be very fleeting,” Finerman stated.