INTRO: Not many companies give up free revenue, but with its latest move, Netflix is fixing to do just that. The company will automatically cancel subscriptions of people who haven’t logged in to the platform for a long time.
Netflix Will Deactivate the Account of Unactive Members
Starting this week, Netflix would send e-mails to subscribers who haven’t watched anything on the platform for two years to confirm that they want to keep their membership. If users don’t confirm that they want to keep paying, Netflix will automatically cancel their subscription. Of course, all of them will be able to re-subscribe to the service any time they want. Plus, if you re-subscribe within 10 months of cancelation, your favorites, profiles, etc will still be available as you left them.
New Policies won’t Affect Netflix Revenue
According to Netflix, the new policy won’t affect its revenues in any significant way. That’s because the company says, the inactive accounts represent a tiny fraction of its total subscriber base. According to the company, less than half a percent of its total accounts are inactive right now. At the end of the quarter ended March 2020, the company reported a total subscriber base of 182.9 million globally, marking a 22 percent growth YoY.
This Step Will Save Money of the Unactive Members
Announcing its new policy, Netflix said: “We’ve always thought it should be easy to sign up and to cancel. So, like always, if anyone who cancels their account and then rejoins within the 10 months span will still have their favorites, profiles, viewing preferences, and account details just as they left them there. In the meantime, with all of this, we just hope this new approach saves people some hard-earned cash”.