Netflix halts ‘all future projects and acquisitions’ in Russia

Netflix just joined the growing list of international brands pulling out of Russia. This comes a week after Hollywood studios began to cancel theatrical releases of blockbuster movies like The Batman.

“Given the circumstances on the ground, we have decided to suspend our service in Russia,” said a Netflix spokesperson on Sunday.

This is a bigger decision than simply making Netflix unavailable to Russian subscribers. The streaming service has also temporarily halted “all future projects and acquisitions,” leaving Russian Netflix releases in an uncertain position. According to Reuters, Netflix currently has four Russian-language projects in production and post-production.

Previously, Netflix refused to add state-run channels to its service in the country, going against a new law for Russian media distributors. This would cover 20 “must-carry” Russian channels, some of which broadcast government propaganda.

Considering the way things are going in Russia’s media landscape, Netflix already ran the risk of being ejected. Over the past two weeks, the Russian government has clamped down on media access, shutting down independent news outlets and using state-run services to spread misinformation about the war in Ukraine. Many overseas outlets like the BBC and CNN are now withdrawing their journalists from the country. And while Netflix is primarily seen as an entertainment company, it does offer factual programming—including the 2015 protest documentary Winter on Fire: Ukraine’s Fight for Freedom, which is now available for free on YouTube.

With a company like Netflix, the motivation to leave Russia is more complicated than it may seem. Some multinational brands like OnlyFans have been accused of making performative protests by pulling out of Russia, doing more harm to vulnerable Russian citizens than to the Putin administration. But there’s also the logistical question of whether a company like Netflix even can continue to function in Russia.

Not only is the government hostile to foreign media, but without SWIFT access, Russian financial systems are in turmoil. Many foreign credit cards no longer work, and international flights are canceled. So while brands like Disney and Microsoft have cited the humanitarian crisis in Ukraine when announcing their departure from Russia, these decisions aren’t purely moral statements. Within the ecosystem of sanctions against Russia, which are designed to pummel the nation’s economy, it is actively difficult for these companies to function.