Why Netflix Investors Should Care About Its Chappelle Controversy

Why Netflix Investors Should Care About Its Chappelle Controversy

Netflix co-CEO Ted Sarandos struck a note of contrition while speaking to journalists after the company released its third-quarter results on the eve of a planned walkout Wednesday by at least 1,000 workers in the wake of one of the biggest controversies the company has faced.



The streaming platform came under fire earlier this month for airing comedian Dave Chappelle’s latest special, The Closer. The show, which landed on the streaming site Oct. 5 and contains offensive jokes concerning transgender people in particular, has drawn the ire of LGBTQ activists as well as Netflix’s own employees.



What happened at Netflix



Sarandos sent an internal memo to employees Oct. 8 arguing The Closer did not cross the line of inciting hate or violence and days later doubled down on that sentiment, writing in another email: “We have a strong belief that content on screen doesn’t directly translate to real-world harm.” Disappointed with the response from leadership, the trans employee resource group (ERG) at Netflix planned a company-wide walkout scheduled for Wednesday.



On Tuesday, Sarandos told Deadline, “I screwed up the internal communication,” and acknowledged that he should have recognized that some employees were “hurting very badly from the