Netflix Will Cancel Inactive Customers’ Subscriptions


Netflix wants people to keep their cash if they are not using their product.

On Thursday, Netflix announced that the firm will reach out to customers who have not watched anything in a year or more since they became a subscriber to check if they wish to maintain their membership or not, according to TechCrunch.

Netflix will cancel those inactive customers’ memberships if the firm does not hear back.

“At Netflix, the last thing we want is people paying for something they’re not using,” the firm said.

Compared to most other companies that are willing to receive fees from their customers’ for as long as they can, Netflix is confident about its loyal customer base.

According to the firm’s financial guidance, these inactive accounts only account for less than half of 1% of its overall member base, or a few hundred thousand users.

At the end of March 31, the company had more than 182 million subscribers. Customers who have canceled their subscriptions can simply rejoin the platform and if they rejoin within 10 months, their previous favorites, profiles, viewing preferences, and account details will not be deleted.

The director of Product Innovation at Netflix, Eddy Wu, said “In the meantime, we hope this new approach saves people some hard earned cash.”

Read the full story here.


Economics, Finance and Investing