This purpose of this research is to understand the role of networked narratives in social media in modulating viewer prejudice toward ethnic neighborhoods. We designed experimental videos on YouTube based on intergroup contact theory and narrative frameworks aimed at (1) gaining knowledge, (2) reducing anxiety, and (3) fostering empathy. Despite consistent storytelling across the videos, we observed significant variations in viewer emotions, especially in replies to comments. We hypothesized that these discrepancies could be explained by the influence of the surrounding digital network on the narrative’s reception. Two-stage research was conducted to understand this phenomenon. First, automated emotion analysis on user comments was conducted to identify the varying emotions. Then, we explored contextual factors surrounding each video on YouTube, focusing on algorithmic curation inferred from traffic sources, region, and search keywords. Findings revealed that negative algorithmic curation and user interactivity result in overall negative viewer emotion, largely driven by video placement and recommendations. However, videos with higher traffic originating from viewers who had watched the storyteller’s other videos result in more positive sentiments and longer visits. This suggests that consistent exposure within the channel can foster more positive acceptance of cultural outgroups by building trust and reducing anxiety. There is the need, then, for storytellers to curate discussions to mitigate prejudice in digital contexts.