The tweet from the entertainment subscription services reads: "#SarahPalinFilms "Iron Sky" http://nflx.it/11AZvLR"
Netflix also included a photo in the tweet that features the main characters in the film, including a bespectacled female actress dressed in a red suit that resembles Palin.
In the picture, the actress is holding a firearm and wearing a hairstyle similar to one Palin wore during the 2008 presidential election. Palin was GOP candidate John McCain’s vice presidential running mate.
In response to a tweet from a user that called the film "hugely entertaining," the company's U.S. Twitter account responded: "Yes it is!"
The company's tweets have sparked anger from conservative Twitter users and bloggers, who have threatened to unsubscribe from Netflix and join another entertainment streaming service, or reject signing up for a Netflix account altogether.
Twitter user @TexasLighthouse tweeted at the Netflix U.S. account: "You don't want to anger your conservative base, who I'd wager are the majority of your customers. Tread carefully. #tcot."
Another user, @patrioticDAR, writes: "Dear @netflix, Based on the crude movie recommendation you made on twitter under #SarahPalinFlims we are canceling [sic] our subscription."
Netflix declined to respond to a request for comment. The controversial tweets published by Netflix were first reported by Twitchy.com, a Twitter curation website founded by conservative blogger Michelle Malkin.
The film "Iron Sky" is a sci-fi spoof about a group of Nazis that escaped to the moon in 1945 "where they hide out and plan to return to power in 2018," according to a summary posted on online movie database IMDb.com.
Several of the movie's reviews on IMDb say the U.S. president in the film is a parody of Palin.
Netflix has run into trouble on social media before.
The Securities and Exchange Commission had previously opened an investigation into whether Netflix CEO Reed Hastings violated securities rules by using his personal Facebook account to announce that the company streamed 1 billion hours of entertainment content in June.
However, that data had not been reported to shareholders in a press release or the company's financial disclosure forms.