Netflix has announced that it will start automatically cancelling accounts that have been inactive for long periods of time.
The company announced that it is notifying customers who haven’t watched anything for 12 months since they subscribed whether they want to keep their membership.
Netflix also is reaching out to those who haven’t streamed anything in the past two years. Members will be intimated via emails or in-app notifications this week.
“We’ve always thought it should be easy to sign up and to cancel. We hope this new approach saves people some hard earned cash” said Eddy Wu, director, product innovation at Netflix.
However, the cancellation of these subscriptions is not going to impact Netflix in any substantial manner. The inactive accounts make up less than half of 1% of its subscriber base, or a few hundred thousand, Wu said.
With this new step, Netflix is setting up a strong precedent for other streaming services to follow which may not be as simple, since they still rely on earnings from these inactive subscribers.
Although, if someone later changes their mind, they will be able to renew their subscription easily. If the user decides to do so within 10 months of deleting the account.
They will get access to previous account settings after returning, such as saved favorite titles, viewing preferences, and profiles.
Netflix has seen a surge of new users since the coronavirus pandemic began. In the first three months of 2020, the streaming platform added 16 million new global subscribers.
The company reported having 183 million subscribers at the end of the first quarter, as per the report.