Netflix has announced that they will begin canceling inactive customer subscriptions. If a person has not used their account in more than a year, the transmission platform will automatically cancel the account. However, the company claims that it will first contact these customers by email to ensure they would like to cancel. If they do not receive a response, they will stop charging the account the monthly service fee. Some people just enjoy paying for things and never using them, but Netflix is trying to stop it.
It is unclear why the streaming giant has chosen to make this announcement at this time. "On Netflix, the last thing we want is for people to pay for something they are not using," the company said. While it seems like an unusual move, it also points to the confidence the streaming platform has in following it. According to the company, there are only a few hundred thousand "zombie accounts", which represents less than 1% of its business. At the end of March, they had more than 182 million subscribers.
Netflix subscribers who end up unsubscribing will have 11 months to return and keep their favorites and watchlists. "In the meantime, we hope this new approach will save people some hard-earned money," Eddy Wu, director of Product Innovation at Netflix, said in a statement. The move appears to be customer-based, although it is unclear how the streaming platform will benefit from this. If they were really doing it for people who never use the service, 3 to 6 months seems like a more viable way to save people money than a year or more.
For now, it seems like Netflix is trying to gain goodwill because of the current world situation. As unemployment continues, people increasingly rely on the streaming platform. In the first quarter of 2020, new subscriptions shot up to 15.8 million, although the company does not expect that boom to continue in the long term. For now, canceling inactive accounts will most likely serve as brand building as everyone begins to figure out how to move forward when we return to some form of normalcy. People are already beginning to leave their homes more and more.
Netflix has been increasing its original content in recent years and paying a lot of money for it. Although the service has gained a number of new users, it is unclear how long those users will stay with the program. For the past few months, Netflix has been something many people have relied on, along with other streaming services, and will continue to do so, although it will be interesting to see what their records look like in late 2021. Yahoo Finance was one of the first to report. about canceling unused Netflix accounts.
Topics: Netflix, Streaming