🚨Netflix Going Out Of Business?! Stock Tanks…Customers Reject Obama’s Woke Trash! Mass CANCELLATIONS S6 E7

Netflix could be going bust. That's the word on the street anyway. I mean, you could go, remember Blockbuster? And remember how Netflix put Blockbuster out of business? I mean, it's like history just rebelled in itself. Stock downgraded pretty badly. This is amazing, right? So they got downgraded if you would. I would say that they're in big, big trouble. Unless things change, you know, there's there's always a chance if you would for things to change. But Netflix, it could, if it's not careful, find itself in a situation much like, much like Blockbuster years ago. I mean, they weren't really kidding when they coined the phrase go, go broke, right? It's happening. I'm looking at Netflix right now and the stock got downgraded. Effectively, there I said a trash, but you know, it kept giving us all that nonsense from old balma, right? And then we had to sit through Megan and Harry and oh my goodness. I'll just tell you, you know, customers have revolted. You've got mass cancellations. They keep raising prices in the companies and trouble. It's in big trouble, especially with the paramount thing going through. I don't see them unless they change drastically and look, I'm told by sources close to them that they are viciously competitive and that they're not going to stand by and let this one just sail away. So I said to a source recently, well then they're going to have to get their act together because go, go broke is real. Okay? You just can't keep paying Obama millions and millions of dollars and expect him to turn you some numbers. Like that's not how it works in entertainment. You've got to be a little bit more capitalist and a little bit more savvy. But I do think it's kind of ironic because I remember, do you remember when Netflix first came out or remember how we all got? I don't know if you got, but I was so excited because like you could plan ahead on Friday night, you get your movie delivered in the mail and you get a CD. I tell my kids about this and they're like, what is a CD? We're going to back off a ways. But you used to get your CD in the mail and it was so annoying having to mail that thing back. That's what really annoyed me. That was the only challenge with all of it. But it took over for the VHS tape. And then my kids are really like, well, what do you mean the VHS tape? But I'm like, yeah, we used to go to Blockbuster Video and we'd like peruse the aisles. That would be half your Friday night right there, right? You'd peruse the aisles and try and find a movie to watch. Well, Netflix changed the entire industry. They were the new kid on the block that totally reinvented Hollywood, which is what I think Paramount's going to do. I mean, they created, if you would binge watching, how amazing is that, right? And they put Blockbuster out of business. Well, now I got news for them. Guess what? Ladies and gentlemen, Netflix is about to get Blockbuster. Couldn't happen to a nice or bond, right? Remember, this is the crew. Again, they did all those Obama deals. They put Susan Rice on their border directors and they launched a whole series of programming with trans characters. Yeah, they're really, really into the trans thing. They just couldn't get enough trans characters, including on all their children's shows. And they would not stop with the nonstop virtue, virtue signaling to all of us. Again, like I said, like, if entertainment is embedded with culture and if you're trying to really create a stable culture for the future, then why are you doing all of this nonsense? But that was what they were all about. It's still what they're all about. So what did people do? Well, they rejected it, right? They went elsewhere. We all went elsewhere. And as a result, you had more and more technology growing up in every other place. And people found what they appreciated and wanted to watch. And maybe they did that on YouTube and via other mechanisms, maybe they're watching on X. This technology is changing so fast that we don't need the gatekeepers at Netflix anymore. They're out there curating our content. Hey, guys, we can get it ourselves. That's what we can even make it ourselves, right? And think about it. YouTube lets anyone in X lets anyone in a kid with a cell phone can build an audience faster than a Netflix development executive with a $20 billion checkbook. Think about that. That democratization of entertainment and news. And yet Netflix is out there still acting like they are so darn special. Like they got it all going on. Like they're going to curate culture for you. Well, the stock is getting gutted and Wall Street has finally said the quiet part out loud. You know what? I'm telling you, this thing is not a one-time dip. This is a company aging out. This is a company getting. Wait for it. Blockbuster. Okay. That's what's going on. I remember what happened to Blockbuster. It went bankrupt. I mean, I've been looking at the numbers. And I mean, they're hanging out around 70 bucks. It's down like 24% this year, 41% over the last 12 months. That is not a bad week. That is the market basically taking what they once thought was a gross stock and putting a gross stock multiple on it and dragging it down into the tired old media stock. And it gets worse. So take a look at this. I was reading this earlier before I came to Arity. This is a report that came out of Wells Fargo. And it's pretty substantive. It's the equity research division. But the headline here is they like to use fancy words. That's why if you haven't subscribed to my research at 76 research, you should because we don't try and, you know, tell you anything other than the truth. Here, they're calling it underweight. They want you to underweight. They're cutting the stock. A guy named Stephen Cahill over there at Wells Fargo. The Wells Fargo, yes, is not really hedging. He is hedging because his language is so darn polite. He's saying that the stock is underweight, which the translation is sell. So again, in my research at 76research.com, we try to be a little bit more upfront. So if we wanted to sell a stock stock, we'll just say, you know, sell or buy. But this is underweight. And he thinks that the price target is going to be 57 bucks. So this thing is going down. He originally had a price target of 80 on it. And if you get into the nitty-gritty of it, he's basically looking at, and I quote, engagement trends. Engagement trends look worrying to us. Netflix, he said, has lacked big original series and it's showing. We see breakout hits as a must for the stock to work again. But again, don't forget what I just told you. I mean, how the heck are they going to get a breakout hit when they got a whole bunch of libs that all think the same. They can't figure out which end is up. They can't figure out a hit to save themselves right now. I mean, I'm sorry. They're just not very talented. But they make a lot of money and they have big checkbooks. So how long does that last in this new media environment? He also says that members of Netflix, they watched 1.6 hours a day or they did for the first half of 2026, which is 8% less than 2023 when you adjust for the password cracked down. And he expects viewing on the top 100 originals to drop 21% in the back half of the year. Wow. Okay. And US TV shares slipped under 8%. If you read between the lines here, he doesn't think it's growing in the US anymore at all. Like the only hope is that it's going to grow in Europe. And that's Wells Fargo. And there are more reports. I mean, HSBC was out there with another one. They took it down from buy the hold, another fancy way to say get rid of this dog. Get the heck out of this dog as fast as you can, right? They're too polite. But who are they concerned about? They're concerned about YouTube. Naturally, because as I told you, YouTube is where it's at. This is the biggest share of television time. And Netflix is now down to 7.8%. With YouTube at 14.2. So they are eating Netflix's lunch. They're eating. Well, actually the whole living room. They're like godling it up, right? You put on your television. What are you watching? It's not Netflix. You know, again, anecdotally, I can tell you, I get so many of you that are watching the show on the big screen, on the television screen. You know, I'd be on Netflix too if I could. But apparently you have to have a fancy schmancy Hollywood agent. I can tell you I'm done with broadcast news agents. I've had plenty of them through my career. I had one good one who unfortunately died. And once he was gone, I was still a fox at the time. I was like, you know what? He was the only decent one out there. I'm not getting an agent again. So I'm a thousand percent independent. And you know, you want to do a deal with me. I have people that help me, but I won't use an agent. Absolutely not. But at Netflix, you have to have one of those highly connected, powerful agents that go to lunch, Tom Dick and Harriet, whoever's over there in order to be on their networks. So think about that too. I mean, I'm on Spotify every day. I'm actually on the top 50 news shows on Spotify. So follow me there. I'll make sure to put that in the links. I'll put that in the show notes. I don't think I did, but I'll make sure when I get off air, I do that. And I'm on Apple audio with podcasts. So I'm just saying the bottom line here is like Netflix is saying, no, no, no, no, no, no, no, we are the gatekeeper and no one can come in. And it's like, guys, nobody wants in. Okay. We can go everywhere else. So you're going to have to fix that if you want to keep up with the times. The Netflix model is broken. And that's the part Hollywood still does not want to admit. I mean, heck, they were just getting used to it, right? They just got used to Netflix. Netflix being out there, and they just realized, okay, blockbuster films are not where it's at anymore. We're gonna have to come up with some new creative way to deliver content. All of a sudden, they figured out that people would binge on these really good shows. The problem is, keyword, really good. Or let's just go with good, okay? 'Cause they don't have any good shows. And so, I don't know what to tell 'em. I mean, you can't bundle taste anymore. And that's what's his entire pitch is. You pay us, and we will decide what's good. It only works when the alternative is blockbuster. And three broadcast networks. I'm sorry, the alternative is infinite. You get sports on YouTube. You get comedy on, actually get a career in drama that didn't need a Los Gados Silicon Valley. Notes meeting to actually come into creation. A creator who doesn't have a VP of inclusion strategy. Netflix hasn't figured that out yet. And that's why Wall Street is saying so, let's get out of this. You got bloated. Hollywood entertainment egos that at least for today can still write a big check, but not for long. Not for long, not for long. Okay, the executives have proven. They have no discipline. They're spending $20 billion a year on content that nobody wants to watch. So now they're turning to this free thing, and they're putting like woke podcasts in, and games and reality shows. And they're trying to compete with YouTube. But here's the problem. YouTube is free. Spotify's free too. Netflix wants you to pay. So if you're just getting everything you'd get on Netflix, or forgive me on YouTube, why would you pay for Netflix? You wouldn't. You just wouldn't. You pay for a service that you actually need, and that you actually want. And right now, you don't need or want it. And they've made themselves like a political hot rot. Like they are just like too, too, too political with their woke garbage. I want to show you, let's go back to some of those hearings. In February, this is testimony before Congress from the Senate hearings. And oh, boy, we would fail pushing a political view or propaganda. We deliver entertainment to consumers. Our consumers see our business pretty much the way they see the America. Okay, that is Ted Sarandos. He is the CEO, and I'm just going to tell him, sorry guys, you're not that entertaining. It's just not that entertain because your entire agenda is totally political. That political agenda is so very apparent and become a part of the rot if you would at Netflix, not every title, but a lot of titles, right? And every time they publish something with their never ending woke nonsense agenda, well, you know what, you're telling the audience or at least half the country, so half your audience, this product is not for you. I mean, you had the Bridgerton, you're writing in the Georgian court as a diversity seminar and you get the kids' shows with the trans storylines, like Paranormal Park and babysitter's club, Transformers, Earth Spark, explaining non-binary to seven-year-olds, are you kidding me? Are you kidding me? And then cuties, which they're never going to live down. I mean, that was like the French Netflix team that brought the world a whole lot of really inappropriate camera shots of young girls, which led to a viral cancel Netflix campaign. And then you had the Gone with the Wind page that lectured us about racism and told us to go to Black Lives Matter. Black Lives Matter, who by the way, wants to destroy the nuclear fund family and defund the police and install reparations for everyone. Yeah, that's really not gonna fly. Just not gonna fly, I'm sorry guys. So in February, like Republican senators are out there and they're asking these questions to Ted Surandos, as I said, the co-CEO. And well, let's just say under oath it got really good because Senator Josh Holley asked, why is so much of your content, your kids' content out there pushing a transgender ideology? Almost half of your content. For sure, I'm talking about minor children now. I'm not talking about teenagers. Minor children promotes a transgender ideology agenda. I was just looking at the data here from your very series. The very series. If you turn on Netflix, you'll find that an enormous amount, I say this as a parent with three young children and an enormous amount of your children's programming has this ideology and agenda in it. Is this an advocacy position for Netflix? Are you, is this an ideological commitment you have? And why is this? Senator Holley, Netflix has no political agenda of any kind. I would tell you that. Why is the children's program so full of this highly sexualized, highly controversial, highly controversial agenda? I don't understand it. It seems strange to me. Respectfully, sir, it's because it's inaccurate. We have millions of hours of children's programming. You're saying it's not there. You don't have trans, you don't feature trans characters, trans storylines, trans themes. It's the same, it's not in your programming. I'm saying we feature a wide variety of stories and programs to meet a wide variety of people's tastes. Why is almost half of it? Why does almost half of your children's program feature this highly controversial, highly sexualized material? What, that just seems strange to me? Is it, it can't possibly be a reflection of the population? Senator Holley, I don't have any idea where that number would come from or what that would be. I don't believe that's been your personal experience, but I don't, I can't speak to that. What do you mean? You don't think it's been my personal experience? You don't think that I monitor what my children watch. Here's why I tell you what my personal experience is since you bring it up. My personal experience is that my three children, I can't let them watch anything they want on Netflix. I can't let them watch anything on Netflix unless I preview it. Wow. So, you know, this guy just got raked over the calls. I mean, it went from bad to worse. And I'm telling you, like this company, they've got to figure it out. Like Teddy Boy, you better, like, I don't know what to tell you. You better, like, rethink your entire business model because Wall Street's right. You are now officially an old media company. Paramount's coming in, they're gonna eat your lunch. YouTube is eating your lunch and they're gonna keep doing it for goodness sakes. I'm just blown away. Here's Schmidt. Oh, let's go to representative Schmidt. I want to show you this because he really, I mean, he just destroyed him. He just destroyed the CEO. On June 20th, 2020, on its ex page, Netflix posted a video titled, quote, "To my white friends, guilt, shame, embarrassment," end quote, end quote, we need to do everything in our power to amplify that message. Do you stand by that statement? - I have no recall of that statement at all. - Okay, I just read it to you. Do you have a opinion about it? - I don't have any idea what context is in or anything. It's up to you. - Okay. In the wake of the George Floyd riots, on June 20th, Netflix posted on its page, "To my white friends, guilt, shame, embarrassment." What does that mean? - I think that is an uncharacteristic post that I'm deeply regretted that got posted that way. - Okay, well, I did. Netflix also said on May 30th, "To be silent is to be complicit." I don't, okay, I was reading you some things that Netflix posted at that time. So you don't stand by that statement then. - As I said, sir, we have no political agenda. Posting something like that would be quite political, but I would agree. And I would say, I hope that wouldn't happen again. - Oh my gosh. Oh, and yet it did, right? Like all kinds of things kept on happening. And you know, this guy, I'm sorry. I just, I don't know what to say because I think that they knew exactly what they were doing. And they were trying to curry favor with the administration while simultaneously curry favor with all the people they loved because this was their viewpoint and this is what they believed in. And so, you know, you go to Ted Cruz. I mean, this is, you know, Ted Cruz isn't putting up with any of this nonsense. And he brings a Billy Eilish as one example. - Are we right now on stolen land? - I have no idea the history of this land of the way we're sitting today. Nor do I, Senator. - So that speaks volumes that neither of you are willing to say, "Hell no, we're not on stolen land." And I will say, it's a Grammys, when you see an entertainer say, "Nobody is illegal while we're on stolen land." And then you see an entertainer's leap to their feet clapping so excitedly at the notion that America's fundamentally illegitimate, it starts to convey that the entertainment world is deeply corrupt. And I will point out that same singer who says, "No one is illegal on stolen land," promptly went back to her $14 million mansion. And somehow that stolen land she wasn't concerned about, just the United States of America. Look, Netflix has long been a left-wing company. - Yep. - Your founder Reed Hastings is one of the biggest Democrat donors in the country. - Yep. - Including giving millions recently to the massive Jerry Mander in California, making it one of the most Jerry Mandered states in the union, because your founder desperately wants a Democrat House of Representatives. Susan Rice from the Obama White House is on your board of directors. - Yep. - You guys gave $50 million to the Obamas as far as I can tell to produce no discernible content whatsoever. (laughing) - How would you tell a Texan sitting at home to feel comfortable? CNN is already a dumpster fire. There's nothing resembling objectivity. There's nothing resembling journalism anymore. - How are people at home to, how should they feel even remotely confident that if this merger happens, the combined the entity would not simply be a propaganda outlet pushing one particular political view with much greater market power than you have now. Well, so we would fail. We would fail pushing a political view or propaganda. About 40% conservative, about 40% liberal, about 20% don't know. When they turn on TV, they're tuned in to be entertained. And if we fail to entertain them by trying to promote propaganda or something, or something anything other than entertainment, we fail. Well, you're failing. Don't know what else to tell you guys. You are definitely failing, which might be because you actually are not providing entertainment, but you are providing political messaging. Remember Susan Rice? I'm not going to bore you with this soundbite, but I played it the other day for you. She's on the board and she's Obama's former national security adviser and she's on the Netflix board. I guess she helped sign off on that $50 million pay package for the Obama's. Well, right in the middle of this '83, well, actually, forgive me, $110 billion Warner Brothers discovery merger. You know, she was out there. I'm sorry. Like, you wanted to get that thing through. You really didn't want her on the board and you really didn't want her basically saying what she did. She came out and she threatened any company that does anything that Trump wants. If you, quote, take a need of Trump, you should be ready for subpoenas because she's coming for you when she and her team are back in charge. I mean, that kind of vicious partisan, very directed threats. Like, that's not good, right? And you can't have an entertainment. They were trying to, they were trying to get Warner Brothers discovery. And I think that that probably hurt them quite badly because if I'm a shareholder, right, I don't want my company going with the deal that might not go through. I want the sure thing. And by the way, David Ellison was also offering more money. So I was going to get more per share if I went with Ellison and I had a better shot of getting that deal through. And I'm just going to tell you this, it is the better move for the company for sure because you're going to actually have a forward thinking group that isn't obsessed with constantly lecturing us about woke ism. I'm telling you, things are changing. They're changing at CNN. They're changing at, at all of these companies, Netflix, bye bye. Okay. You either change and get with the program or you are going to fall because you're out there curating your sermons while David Ellison is buying Hollywood. Okay. He beat you and he beat you a big time. $110 billion later, the whole company, Warner Studio, HBO, HBO, Max, CNN, the cable stack, Netflix's bid was the, oh, well, you know, we're the nice ones to have. We're going to help promote woke ism. We're in the club. Hollywood likes us. No, no, no. It's about capitalism. It's about success. What is going to move the needle forward? And so this week, while sometime in the next five days, Ellison will own it. And he's going to have studios. He's going to have big time prestige of TV. He's going to have news divisions, including CNN. He's got a streaming bundle that isn't just an app with a lecture attached. He's got a massive entity, Trump World Access, Barry Weiss at CBS, a company that at least pretends the audience is actually the whole country, not a development slack channel for a bunch of woke idiots that can't, with $20 billion, pick the right shell. This is going to be amazing. It is going to be different and it's going to be great. And hopefully, we can get back to some normalcy. We can get back to good TV and we can embrace simultaneously the technology that's going to make entertainment new and exciting and different just as it has in news, right? Just as we have the citizen journalists out there capturing everything, we don't have to wait around for whatever is published from the Los Gatos Silicon Valley meeting that day. We are getting real content from real creators with an open platform so that everyone can get it. I love it. Like, I just love it. Anyway, good to have you here. Big show today. We'll be back tomorrow with much, much more. I'll see you then.