Mubi's Subscriber Struggles Amid Controversial Investments

Mubi, a London-based arthouse streaming service, faced significant challenges in subscriber retention last year, primarily due to a public relations crisis linked to its investment choices. CEO Efe Cakarel reported that the company ended 2025 with approximately 1.2 million subscribers, a decrease of over 200,000 from the previous year, despite an internal goal of reaching 2 million subscribers. The company incurred a loss of $7.3 million against $200 million in revenue, as reported by the Wall Street Journal.

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The decline in subscribers coincided with Mubi's controversial partnership with Sequoia Capital, an investment firm that has ties to companies associated with the Israeli military. This association became particularly contentious amid allegations of human rights violations in Gaza, leading to backlash from Mubi's left-leaning audience, filmmakers, and employees. Critics expressed concerns over Mubi's alignment with Sequoia, arguing that it contradicted the platform's values.

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Despite the setbacks, Cakarel indicated that Mubi's outlook for 2026 is more optimistic, with a record 1.7 million subscribers reported at the end of the first quarter. The company has also secured distribution rights for four of the five Oscar nominees for Best International Film and has multiple films selected for the Cannes Film Festival. Cakarel emphasized the importance of transparency in decision-making and the need to address ongoing tensions within the company.

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Cakarel defended the partnership with Sequoia, stating it was essential for Mubi to continue supporting ambitious cinema. He acknowledged the need for better communication regarding the company's decisions and expressed a commitment to listening to dissenting voices. "I know now my job is to listen seriously, explain the decision more transparently and more quickly," he stated.

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The backlash against Mubi's association with Sequoia reflects broader concerns about corporate responsibility in the arts. Critics argue that the company's financial partnerships should align with its cultural values, particularly in light of the sensitive geopolitical context surrounding the Israeli-Palestinian conflict. This tension has led to strained relationships within the creative community associated with Mubi.

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Looking ahead, Mubi plans to expand its operations into Africa, Asia, and Eastern Europe while continuing to grow its film slate. Recently, the company entered a multi-year co-financing agreement with IPR.VC to support European auteur films, indicating a strategic shift towards more localized content production.

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• “In an interview published Friday, Cakarel told the Wall Street Journal, “Losing subscribers and growth slowing down—it was all very real.” — Efe Cakarel, CEO of Mubi

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• “We are more deliberate about what we do,” he said.” — Efe Cakarel, CEO of Mubi

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Mubi's journey illustrates the complexities of navigating artistic integrity and commercial viability in a politically charged environment.

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