Following the coronavirus lockdowns, it appears that American consumers are re-evaluating their connections with Netflix. The streamer is reporting that they lost over 500,000 members in the US and Canada during the second quarter. Could the cause be from an unexpected consumer backlash as the streaming service continues to embrace left-wing ideology and woke material, including a new slate of programming from Barack and Michelle Obama?
The departure underscores a growing public dissatisfaction with subscription streaming services in general, and notably Netflix, as Americans get tired of rising pricing and over-hyped content, while embracing alternative sources of entertainment post-lockdown. The streamer claimed it lost 430,000 customers in the United States over the period, the first time it has lost subscribers in two years. Subscriptions are viewed as the most important sign of Netflix’s financial health by Wall Street since they are the strongest predictor of the company’s future cash flow.
Their most recent subscriber exodus pales in contrast, as it lost 100,000 subscribers in the second quarter of 2019. Netflix blamed the massive membership drop on seasonality and the already vast size of its North American user base in its earnings statement. The streamer made no mention of its increasingly left-wing material or the openly partisan public stances adopted by its management in recent months.
Reed Hastings, co-CEO of Netflix, is a bonafide hard-left progressive. He reportedly donated $3 million to help California Gov. Gavin Newsom (D) fight the current recall effort – the largest donation to the Stop The Republican Recall fund at the time. That recall effort is still moving forward. Hastings and co-CEO Ted Sarandos both supported Joe Biden’s presidential campaign. As part of their overall partnership with Netflix, the Obamas revealed earlier this year that they will adapt the migration and refugee-themed novel Exit West into a film. The former first couple recently launched We the People, a woke reimagining of Schoolhouse Rock, as a ten-part animated series.
Programming like the controversial material like Cuties, offensive cartoons, and other over-hyped shows like Tiger King, Waffles & Mochi, and Bridgerton haven’t helped their fortunes. They seem to worry about offending Hindu’s. Will subs drop in that region of the world next?
The streamer has also cracked down on using VPNs to access content outside of one’s region, and according to Breitbart News, a recent survey found that nearly one-third of respondents plan to abandon the streaming services they are now using once the United States reopens fully. Among those looking to quit their streaming subscriptions, 46% said Netflix, 34% said Hulu, and another 34% said Amazon Prime. This year, the streamer implemented its latest round of price increases on US customers, raising the ordinary membership from $12.99 to $13.99 per month and the premium tier from $15.99 to $17.99.
Get woke, go broke is still in play.