Netflix to start cancelling inactive customers’ subscriptions

Netflix said Thursday it will ask users who have not watched anything on the on-demand video streaming service in a year or more if they wish to maintain their subscription — and will cancel the subscription if it does not receive a confirmation. The company said it has started to notify customers who have’t watched […]

Netflix said Thursday it will ask users who have not watched anything on the on-demand video streaming service in a year or more if they wish to maintain their subscription — and will cancel the subscription if it does not receive a confirmation.

The company said it has started to notify customers who have’t watched anything on the service in 12 months since they became a subscriber to check if they wish to keep their membership. The company is also reaching out to those who haven’t streamed anything in the past two years, it said.

“You know that sinking feeling when you realize you signed up for something but haven’t used it in ages? At Netflix, the last thing we want is people paying for something they’re not using,” the company said.

The unusual move illustrates just how confidence Netflix has on its loyal customer base. Most companies are happy to withdraw their cut from your bank account or credit card for as long as they can.

Netflix said these inactive accounts only represent few hundred thousand accounts, or less than half of 1% of its overall member base — a fact that the company already factors into its financial guidance.

The streaming service, which had more than 182 million subscribers at the end of March 31, says it will be easier for those whose accounts have been cancelled to rejoin the platform. Those who rejoin within 10 months will still have their favorites, profiles, viewing preferences and account details just as they left them.

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

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