What’s the Deal with Musk and Netflix?
This week, Elon Musk took to his platform to tell his followers to ditch their Netflix subscriptions. But why? It’s all related to a heated debate involving an animated series and its creator.
- Musk urged people to cancel subscriptions this week due to claims of a “transgender woke agenda” pushed by Netflix.
- The company’s stock dropped 4% in the wake of his remarks.
- Industry experts think Musk’s impact on Netflix’s stock might not be as significant as he believes.
On Wednesday, Musk made his statement public on X, saying, “Cancel Netflix for the health of your kids.” This post stemmed from a controversial image that accused Netflix of promoting a certain agenda.
The uproar seems to center on a Netflix show called Dead End: Paranormal Park, known for featuring a transgender character, which was canceled after its second season in 2023. While many supporters enjoyed the show, several conservative voices expressed outrage.
In the midst of the controversy, Musk engaged in a back-and-forth regarding comments made by the show’s creator, Hamish Steele, who allegedly made remarks that were interpreted as mocking conservative commentator Charlie Kirk’s campaigning for traditional values. Steele replied on a competing site, Bluesky, remarking, “It’s probably going to be a very odd day,” and shared another writer’s praise of his show.
When asked for a comment, Netflix didn’t respond to inquiries from CNBC.
Will This Impact Netflix?
Analysts believe the situation may not deal a significant blow to Netflix. End of last year, the platform boasted over 301 million subscribers. Despite the small drop in stock prices recently, Netflix’s value has increased significantly—nearly 60% over the past year.
“Is this really going to change anything? … There could even be new subscriptions as people decide to stand against this boycott,” shared CNBC contributor Guy Adami on “Fast Money.”
Alicia Reese from Wedbush Securities pointed out that Musk’s related comments came too late in the quarter to impact subscriber numbers. She thinks Netflix will adapt and may even benefit surprisingly from added advertising revenues. “Their performance will hold up pretty well,” she stated confidently.
Tim Seymour indicated that although this buzz might sway the stock temporarily, the share prices of Netflix are currently resilient against online activism.
This situation mirrors earlier online backlash against Anheuser-Busch last year when they teamed up with a transgender influencer; however, the fallout felt more significant than what Netflix might face here. Still, Karen Finerman recognized, I think this will be a short-lived moment in the spotlight.
