Elon Musk calls for canceling Netflix. Here’s what’s happening

Elon Musk Calls for Netflix Boycott Over Transgender Animated Show

Elon Musk recently urged his followers to cancel their Netflix subscriptions due to a controversy surrounding an animated show and its creator. The show in question, “Dead End: Paranormal Park,” features a transgender character and was canceled in 2023 after two seasons. Musk’s call to action was sparked by an image accusing Netflix of promoting a “transgender woke agenda” through the show.

The backlash against Netflix stems from conservative criticism of the show’s portrayal of a transgender character. Musk posted on his X platform, saying “Cancel Netflix for the health of your kids,” in response to the image. He also responded to a post criticizing alleged statements made by the show’s creator, Hamish Steele, which a prominent conservative X account claimed “mocked” the murder of conservative activist Charlie Kirk.

Creator’s Response and Analysts’ Views

Steele responded to Musk’s callout on rival social media platform Bluesky, saying “It’s probably going to be a very odd day.” He also shared a post by TV writer Jack Bernhardt that praised “Dead End” as a “brilliant show about kind, wonderful characters.” Despite the controversy, analysts believe that the backlash may not pose a significant threat to Netflix. The company has a large market cap of roughly $490 billion and its stock is up over 60% in the past year.

Analysts such as Guy Adami and Alicia Reese think that the impact of the boycott will be minimal, with Adami stating that “You’re going to see people sign up on the back of that to counter it.” Reese believes that the comments came too late in the third quarter to make any meaningful impact on subscriber counts and that any impact will be offset by an increase in ad revenue. Tim Seymour of Seymour Asset Management also thinks that Netflix shares are too expensive to be significantly affected by internet backlash.

Comparison to Previous Boycotts

The calls for a boycott against Netflix mirror those against Anheuser-Busch InBev in 2023, which released an ad campaign with transgender influencer Dylan Mulvaney. However, the boycott of Bud Light yielded “far greater” destruction than any other recent examples, according to CNBC contributor Karen Finerman. Finerman believes that the current boycott will be “very fleeting” and have minimal impact on Netflix’s subscriber base.

Netflix reported 301.63 million subscribers as of the fourth quarter of 2024, and its stock is down 4% so far this week. Despite the controversy, analysts remain optimistic about the company’s future prospects, citing its strong market position and growing revenue. As the situation continues to unfold, it remains to be seen whether the boycott will have any significant impact on Netflix’s business.