Elon Musk is once again at the center of a media stir, this time urging his millions of followers to cancel their Netflix subscriptions over a heated controversy surrounding an animated show and its creator. The remarks have contributed to a roughly 4% drop in Netflix shares this week, though analysts caution that the effect on the company’s stock may be limited.
On Wednesday, Musk posted on his X platform: “Cancel Netflix for the health of your kids,” reacting to images and posts accusing Netflix of promoting a “transgender woke agenda.” The controversy primarily revolves around Dead End: Paranormal Park, an animated series featuring a transgender character that was canceled in 2023 after two seasons. The show has drawn criticism from conservative circles, sparking debates over representation in children’s programming.
In addition to his posts about the series, Musk also highlighted allegations directed at the show’s creator, Hamish Steele. A prominent conservative X account claimed Steele had mocked the murder of activist Charlie Kirk. Steele responded on rival platform Bluesky, stating, “It’s probably going to be a very odd day,” and shared posts from TV writer Jack Bernhardt praising the show as “a brilliant show about kind, wonderful characters.”
The conversation has been amplified by conservative activist Robby Starbuck, who has criticized Netflix for allegedly promoting an ideology “hateful to White Americans” and called for viewers to stop supporting the company financially. Starbuck has increasingly targeted major corporations over diversity, equity, and inclusion initiatives, using social media to rally boycotts. Netflix, however, has not responded to requests for comment from CNBC.
Despite the online backlash, analysts suggest that the impact on Netflix’s business may be limited. The company reported 301.63 million subscribers as of the fourth quarter of 2024, before shifting its reporting focus from subscriber growth to revenue. With a market capitalization of roughly $490 billion, Netflix’s stock has climbed over 60% in the past year, though it has fallen about 5% so far this week.
CNBC contributor Guy Adami noted that Musk’s calls for cancellation may have mixed effects: “Is that going to move the needle necessarily? You’re going to see people sign up on the back of that to counter it.” Wedbush Securities’ Alicia Reese said the timing of the remarks, late in the third quarter, is unlikely to significantly affect subscriber counts and any minor impact could be offset by ad revenue. Tim Seymour of Seymour Asset Management echoed these sentiments, adding that while news headlines can cause short-term swings, Netflix shares are generally too expensive and stable to be heavily influenced by internet backlash.
Analysts also compared the situation to the 2023 Bud Light boycott following the brand’s collaboration with transgender influencer Dylan Mulvaney, which caused a far greater market disruption. CNBC contributor Karen Finerman predicted that the current controversy surrounding Netflix is likely to be much shorter-lived: “I feel like this will be very fleeting.”
With social media amplifying every statement, the debate over content, corporate ideology, and online influence continues to capture national attention—and Netflix remains at the center of it.
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