Netflix Faces Boycott Calls, Legal Woes Over Price Hikes Despite $3B Warner Windfall

Netflix encounters surging online backlash and an Italian court ruling against recent price hikes, even as it basks in a nearly $3 billion breakup fee from the failed Warner Bros. deal. The streaming giant crushed Q1 expectations on April 16 with $5.28 billion net income (EPS $1.23 vs. $0.76 est.), $12.25 billion revenue (vs. $12.2B est.), and raised full-year operating margin target to 31.5% from 29.5%, sparking a 42% stock rally from lows. Consumer anger over pricing amplifies churn risks ahead of sustained ad-tier growth scrutiny.