Netflix Inc (NASDAQ:NFLX) released many hit shows and movies in the third quarter, but now faces the possibility of subscribers cancelling their memberships thanks to the world’s richest person.
But, while Elon Musk was telling people to cancel their Netflix memberships, another billionaire could provide a boost by supporting the company’s live sports efforts.
Musk Says ‘Cancel Netflix’
Tesla CEO and world’s richest man Elon Musk took to the social media platform X, which he owns, to encourage Netflix subscribers to cancel their subscriptions.
Musk shared several posts on social media from others that encouraged the cancellations.
“Cancel Netflix for the health of your kids,” Musk tweeted.
The support to “cancel Netflix” by Musk comes after accounts shared a clip from animated Netflix original “Dead End: Paranormal Park.”
The show has a transgender character and also comes with a Y7 rating, with several accounts saying this means the show is targeted at children and pushing trans ideals on kids.
A report from Variety says the show ran for two seasons and was later cancelled in 2023, but all episodes remain available to stream on the platform.
The series creator Hamish Steele shared several posts on social media saying Netflix is not promoting the show.
This is not the first time Musk has told his more than 200 million followers on X to cancel streaming subscriptions. In 2023, he previously told his followers and supporters to cancel Disney+ and Hulu as he waged war against the media company over advertising on X.
The Walt Disney Co. (NYSE:DIS) may have lost 1.7 million streaming subscribers recently due to their suspension of late-night talk show host Jimmy Kimmel.
Read Also: Jimmy Kimmel Suspension Fallout: Cancel Disney+ Searches Soar, Will Comcast Win With Fallon?
Oracle of Omaha Stands In Netflix’s Corner
Netflix could see a rush of cancellations and the term, “cancel Netflix”, hit its second-highest mark on Google Trends in the past 12 months.
The good news is the company had key content in the third quarter and the current fourth quarter that could help bring in new subscribers — and it received some support from billionaire Warren Buffett.
It’s not every day companies get public support from the Berkshire Hathaway chairman, especially if he’s not a shareholder.
But that’s what happened to Netflix last month, thanks to its live and exclusive boxing fight card that featured the title fight between Canelo Alvarez and Terence Crawford.
Crawford, who is from Omaha, Nebraska, like Buffett, counts Buffett as a friend and supporter, as reported by the Wall Street Journal.
Buffett admitted he stayed up late to watch Crawford win the fight. Netflix later reported that 41 million people, including Buffett, watched the boxing match.
“I’m a huge fan,” Buffett said. “There’s nothing in the world that would cause me to stay up until after midnight on a Saturday.”
This was a huge free endorsement for Netflix and came from one of the most followed figures in the world.
Buffett has attended “six or seven” of Crawford’s past fights and has become a strong supporter.
“Bud is all Omaha. He emphasizes his Omaha heritage every chance he gets.”
The Alvarez vs. Crawford boxing match was one of several marquee Netflix items for streamers during the third quarter. The company also released new seasons of “Squid Game” and “Wednesday” in the third quarter.
Netflix also released the sleeper hit “KPop Demon Hunters” in the third quarter, but much of its success may have come in the fourth quarter.
Speaking of the fourth quarter, the subscribers who listened to Musk and canceled their Netflix account will miss out on the new season of “Stranger Things,” two exclusive NFL Christmas Day games and several other upcoming fourth-quarter content releases.
The streaming giant no longer shares how many subscribers it gained or lost each quarter or its overall count, but other financial metrics could show if Musk’s social media call-out hurt the results.
Analysts expect the company to report earnings per share of $6.97 and revenue of $11.52 billion for the third quarter when they report on Oct. 21.
The company has beaten analyst estimates for earnings per share in six straight quarters and beaten estimates for revenue in eight straight quarters.
Netflix Stock Falls
Netflix stock closed Wednesday down 2.34% to $1,170.90 versus a 52-week trading range of $677.88 to $1,341.15. Netflix stock is up 31.37% year-to-date in 2025.
Read Next:
Disney Raises Streaming Prices: Is Disney+ Now More Expensive Than Netflix?
Photo: Shutterstock