Netflix is the world's largest subscription streaming service, with more than 325 million paid memberships in over 190 countries and $45.2 billion in 2025 revenue.[1] Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental company, the Los Gatos, California company reinvented itself as a streaming platform in 2007 and then as a global studio, producing original series and films that now dominate awards season and living rooms alike. Few companies touch as many American households every night, which is exactly why its politics draw so much attention.
- Co-founder Reed Hastings' $7 million Harris donation preceded Netflix's worst cancellation day in a year
- Netflix employees gave $10.7 million in 2020, more than 99 percent to Democrats
- Ted Sarandos bundled Obama campaign money, then brokered the Obamas' $50 million deal
- Management told employees offended by Dave Chappelle content that Netflix may not suit them
- The Obamas' production company is leaving Netflix when its deal expires in 2026
Quick Take
Co-founder Reed Hastings wrote a $7 million check to a pro-Harris super PAC in July 2024, which Hastings called the largest donation he has ever made to a single candidate, days after publicly calling on Joe Biden to quit the race.[2] Within a week, Netflix logged its highest single day of cancellations in a year, per subscription tracker Antenna.[3] Donations from Netflix's people run overwhelmingly to Democrats: about 99 percent of employee giving in the 2020 cycle, when a CNBC analysis called Netflix the most Democratic-leaning major tech company in America.[4] Yet when its own employees walked out over Dave Chappelle in 2021, management refused to pull the special and rewrote the company culture memo to tell offended staff that Netflix may not be the place for them.[5]
Where the Politics Actually Sit
Understanding Netflix's politics starts with one structural fact: the company has almost no formal political machinery. Its influence flows through individuals and content decisions instead. Netflix registered a corporate PAC, FLIXPAC, with the FEC in April 2012, but it has sat essentially dormant, reporting zero dollars raised in recent cycles.[19] Its last reported contributions to federal candidates were $23,300 in the 2016 cycle.[6] That makes Netflix's political money story almost entirely a story about its people. In the 2020 cycle, individuals reporting Netflix as their employer donated more than $10.7 million, with over 99 percent of it going to Democrats, the most lopsided split among major tech companies according to a CNBC analysis cited by the watchdog InfluenceWatch.[4] In the 2024 cycle, OpenSecrets recorded $17.4 million in total contributions associated with Netflix, a figure dominated by individual giving from employees and executives since the PAC itself is dormant.[7]
The lobbying side is steadier and smaller. Netflix reported $1.88 million in federal lobbying in 2024 and $2.3 million through the first three quarters of 2025, having lobbied continuously since 2009, when it started with a $10,000 expenditure.[7]
The $7 Million Check and the Cancel Button
No single event captures the company's political profile better than the summer of 2024. In early July, after Biden's debate performance, Hastings told The New York Times that the president "needs to step aside to allow a vigorous Democratic leader to beat Trump and keep us safe and prosperous." He was one of the first major Democratic donors to say it publicly. Weeks later, Biden withdrew, and Hastings donated $7 million to the Republican Accountability PAC, an anti-Trump Republican super PAC that was working to boost Harris among conservative voters, telling The Information, "After the depressing debate, we are in the game again."[2] Hastings and his wife, Patty Quillin, had already given more than $20 million to the Democratic Party in recent years, according to The New York Times.[2]
The reaction was measurable. According to subscription researcher Antenna, whose data Bloomberg first reported, average daily Netflix cancellations in the five days after the donation became public ran 2.7 times the rate of the prior two weeks, and July 26, 2024 was the platform's highest churn day in a year.[3] Trump supporters had called for a boycott under the #CancelNetflix hashtag. Netflix pointed to the phase-out of its cheapest subscription plan as a factor in elevated July churn, and daily cancellations returned to normal levels by the end of the month.[3] Hastings stepped down as CEO in 2023 and now serves as board chairman; in April 2026 the company disclosed he will not stand for re-election to the board at the June 2026 shareholder meeting.[8]
The Obama Deal and the Friends Who Brokered It
In May 2018, Netflix signed Barack and Michelle Obama's new production company, Higher Ground, to a multiyear deal that industry observers estimated at more than $50 million.[9] The deal was brokered by then chief content officer Ted Sarandos, and the relationships behind it were not subtle. Sarandos and his wife, Nicole Avant, bundled roughly $600,000 in contributions for Obama's 2012 campaign, and Obama appointed Avant as U.S. ambassador to the Bahamas, where she served from 2009 to 2011.[9] Two months before the Obama deal, Netflix had added Susan Rice, Obama's former national security adviser, to its board of directors; she stepped down in December 2020 to join the Biden administration, then rejoined the board in September 2023 after leaving the White House and serves as a director today.[10][23]
Asked in 2018 what he would say to Republicans about the company's apparent leftward drift, Sarandos answered, "Um, wait for the programming," while conceding that "it's hard to argue that there's not a left lean to the creative community."[11] The partnership produced the Oscar-winning documentary American Factory and Oscar-nominated films including Rustin. It is now ending: in April 2026, Deadline reported, and Obama confirmed on stage days later, that Higher Ground will go independent rather than renew its first-look deal with Netflix when it expires later in 2026.[12]
Where Netflix Drew Its Lines
Netflix's record on hot-button fights does not run in one direction, and the lines it has drawn are revealing. In May 2019, it became the first major Hollywood company to threaten action over Georgia's "heartbeat" abortion law, with Sarandos saying Netflix would "rethink our entire investment in Georgia" if the law took effect and would work with the ACLU to fight it in court.[13] Months earlier, the same company had pulled an episode of Patriot Act with Hasan Minhaj that criticized Crown Prince Mohammed bin Salman from its Saudi Arabia service after a legal complaint from the Saudi government. Defending that decision, Hastings said, "We're not in the news business. We're not trying to do truth to power. We're trying to entertain."[14] The contrast is stark: Netflix threatened to pull its production money over a state abortion law at home, then pulled content at a foreign government's request abroad.
In 2020, the French film Cuties triggered a conservative backlash and a Texas grand jury indictment accusing Netflix of promoting lewd visual material of a child; Netflix called the film "a social commentary against the sexualization of young children" and stood by it through years of litigation.[15]
The defining internal fight came in October 2021, when employees staged a walkout over Dave Chappelle's special The Closer, which critics inside and outside the company called transphobic. Sarandos publicly defended keeping the special up. In May 2022, Netflix added an "Artistic Expression" section to its famous culture memo, stating it would not "censor specific artists or voices" and warning employees they "may need to work on titles you perceive to be harmful," concluding: "If you'd find it hard to support our content breadth, Netflix may not be the best place for you."[5] Chappelle has continued releasing specials on the platform.
Products & Services
Netflix sells subscription streaming of series, films, documentaries, stand-up comedy, and games, available direct-to-consumer through its website and apps in more than 190 countries. The service now includes an ad-supported tier, which generated over $1.5 billion in 2025, and live programming, most prominently WWE's Monday Night Raw, which moved to Netflix in January 2025.[1][16]
Leadership, Pay, and the Bottom Line
Ted Sarandos and Greg Peters have served as co-CEOs since 2023, when Hastings moved to executive chairman. Per the company's fiscal 2025 annual report, Netflix generated $45.2 billion in revenue and approximately $11 billion in net income for the year, and it forecast roughly $51 billion in 2026 revenue.[1][16] The 2026 proxy disclosed 2025 total compensation of $53.9 million for Sarandos and $53.2 million for Peters, each down from more than $60 million in 2024.[17]
The Warner Bros. Fight
Netflix spent late 2025 and early 2026 in the biggest acquisition battle in Hollywood history, a corporate fight that took on an unexpected political dimension. In December 2025, Warner Bros. Discovery agreed to sell its studio and streaming business to Netflix for roughly $72 billion, but Paramount Skydance launched a hostile all-cash tender offer for the entire company and raised it repeatedly. On February 26, 2026, Netflix announced it would not match Paramount's final bid and withdrew; Warner shareholders approved the Paramount acquisition in April 2026.[18] During the fight, Senate Democrats publicly pressed Paramount controlling shareholder David Ellison over his family's ties to President Trump, an unusual case of Netflix being cast as the less politically connected bidder.[18]
The politics turned personal in February 2026, while the Justice Department was reviewing the proposed Netflix deal. Board member Susan Rice, appearing on Preet Bharara's "Stay Tuned" podcast on February 19, warned that corporations that "take a knee" to Trump would face an "accountability agenda," including subpoenas, when Democrats return to power.[20] Two days later, Trump posted on Truth Social that Netflix should fire Rice "immediately, or pay the consequences," calling her "a political hack."[21] Netflix kept her on its board, and shareholders re-elected her at the June 2026 annual meeting.[22]
Where to Find Them
Netflix is available by subscription at netflix.com and through its apps on phones, tablets, smart TVs, and streaming devices. The service is direct-to-consumer only, with multiple price tiers including an ad-supported plan, and operates in most countries worldwide.
Footnotes
[1] Netflix, Inc., SEC Form 10-K for Fiscal Year 2025, filed January 23, 2026 (2025 revenue of $45.2 billion). https://www.sec.gov/Archives/edgar/data/0001065280/000106528026000034/nflx-20251231.htm Netflix disclosed surpassing 325 million paid memberships in its Q4 2025 shareholder letter (January 20, 2026); it discontinued routine quarterly membership reporting during 2025.
[2] The Hollywood Reporter, "Netflix's Reed Hastings Backs Kamala Harris With $7M Donation," July 24, 2024. https://www.hollywoodreporter.com/news/general-news/netflix-reed-hastings-kamala-harris-donation-1235956558/
[3] Quartz, "Netflix's CEO backed Kamala Harris. Cancellations quickly surged," September 30, 2024. https://qz.com/netflix-reed-hasting-cancellations-harris-1851661012
[4] InfluenceWatch (Capital Research Center), "Netflix," accessed June 11, 2026. https://www.influencewatch.org/for-profit/netflix/
[5] Variety, "Netflix Culture Memo Update: New Anti-Censorship, Spending Sections," May 12, 2022. https://variety.com/2022/digital/news/netflix-culture-memo-update-censorship-spending-1235264904/
[6] OpenSecrets.org, "Netflix Inc PAC Contributions to Federal Candidates, 2016 cycle," accessed June 11, 2026. https://www.opensecrets.org/political-action-committees-pacs/netflix-inc/C00518233/candidate-recipients/2016
[7] OpenSecrets.org, "Netflix Inc Organization Profile," accessed June 11, 2026. https://www.opensecrets.org/orgs/netflix-inc/summary?id=D000036161
[8] Deadline, "Netflix Co-CEOs Ted Sarandos And Greg Peters Saw Total Pay Dip A Bit In 2025," April 16, 2026. https://deadline.com/2026/04/netflix-ted-sarandos-greg-peters-compensation-2025-1236863600/
[9] Fox News, "Obamas' Netflix deal inked with help from bundler buddy," May 30, 2018. https://www.foxnews.com/politics/obamas-netflix-deal-inked-with-help-from-bundler-buddy
[10] The Hollywood Reporter, "Susan Rice to Step Down From Netflix Board and Join Biden Administration," December 10, 2020. https://www.hollywoodreporter.com/business/business-news/susan-rice-to-step-down-from-netflix-board-and-join-biden-administration-4103023/
[11] Variety, "Netflix Exec: Obamas' Productions Will Not Have a 'Political Slant'," May 29, 2018. https://variety.com/2018/digital/news/netflix-barack-michelle-obama-political-slant-1202823919/
[12] Deadline, "Barack & Michelle Obama's Higher Ground To Go Independent Post Netflix," April 19, 2026. https://deadline.com/2026/04/barack-michelle-obama-higher-ground-independent-netflix-1236865350/
[13] Deadline, "Netflix Would 'Rethink Entire Investment In Georgia' If Abortion Law Holds," May 28, 2019. https://deadline.com/2019/05/netflix-georgia-abortion-law-statement-production-future-ted-sarandos-1202623112/
[14] TheWrap, "Netflix CEO on Censoring 'Patriot Act With Hasan Minhaj' in Saudi Arabia: 'We're Not Trying to Do Truth to Power'," November 6, 2019. https://www.thewrap.com/netflix-ceo-on-censoring-patriot-act-with-hasan-minhaj-in-saudi-arabia-were-not-trying-to-do-truth-to-power/
[15] The Hollywood Reporter, "Netflix Takes on Texas: Attorneys Analyze the 'Outlandish' Fight Over 'Cuties'," March 11, 2022. https://www.hollywoodreporter.com/business/business-news/netflix-texas-cuties-dispute-1235107850/
[16] Matthew Keys, TheDesk.net, "Netflix earns $45.2 billion in revenue during 2025, projects $51 billion in 2026," January 21, 2026. https://thedesk.net/2026/01/netflix-q4-2025-earnings-report/
[17] Variety, "Netflix Co-CEOs Ted Sarandos, Greg Peters See Pay Packages Drop in 2025," April 16, 2026. https://variety.com/2026/tv/news/netflix-ceo-salary-ted-sarandos-greg-peters-1236724061/
[18] Britannica Money, "Paramount Skydance Wins Warner Bros. Discovery After Netflix Drops Out," accessed June 11, 2026. https://www.britannica.com/money/netflix-paramount-skydance-battle-for-warner-bros
[19] Federal Election Commission, "NETFLIX INC PAC (FLIXPAC), Committee C00518233," accessed June 11, 2026. https://www.fec.gov/data/committee/C00518233/
[20] CNBC, "Trump demands Netflix fire Susan Rice as DOJ probes Warner deal," February 22, 2026. https://www.cnbc.com/2026/02/22/trump-demands-netflix-fire-susan-rice-as-doj-probes-warner-deal.html
[21] Variety, "Donald Trump Demands Netflix Fire Board Member Susan Rice," February 22, 2026. https://variety.com/2026/film/news/donald-trump-netflix-fire-susan-rice-warner-bros-1236669384/
[22] Netflix, Inc., "SEC Form 8-K, Annual Meeting Voting Results," filed June 2026. https://www.sec.gov/Archives/edgar/data/0001065280/000106528026000189/nflx-20260604.htm
[23] The Hill, "Susan Rice returns to Netflix board amid Hollywood strikes," September 8, 2023. https://thehill.com/blogs/in-the-know/4195246-susan-rice-returns-netflix/
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