Last week, Netflix announced that they will be reaching out to members who have not watched anything on the platform in the last year or more to see if they would like to continue their membership. They have also announced that if they do not hear back from the member then they will go ahead and cancel the subscription.
Members can rejoin the streaming platform at any time. If they rejoin Netflix within 10-months after their subscription cancellation, the member will still be able to access their account details, profiles, favorites, and viewing preferences as they were when the account was canceled.
This initiative will start this week, with Netflix reaching out via in-app notifications or emails. The move is an unusual one for a company that charges an annual subscription. However, after a strong performance over the last quarter, this move indicates the company’s confidence in its value proposition for customers and its loyal customer base.
In their announcement, Netflix stated “the last thing we want is people paying for something they’re not using.” The company is dedicated to providing the best service for its customers and helping “save people some hard-earned cash.”
The Impact on Netflix’s Member Base
At the end of the first quarter, Netflix reported nearly 183 million subscribers. With this unique initiative to cull zombie accounts, less than 915,000 accounts will be affected (or less than 0.5% of the company’s overall member base). The loss of these accounts has already been factored into future financial projections.
This move helps Netflix stand out in an increasingly crowded marketplace with an influx of new streaming providers including Disney+, NBCUniversal’s Peacock, and WarnerMedia’s soon-to-be-launched HBO Max. If you still haven’t signed up for Netflix, you can get a 7-day free trial to check out all of the on-demand and Original content the streaming giant has to offer.
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