“Are you still watching?” Netflix could cancel your subscription

by | May 23, 2020

Haven’t watched Netflix since you finished the 10th season of ‘Friends’ last year? you might want to stream something soon, or your subscription could get cancelled.

Netflix is going to start sending out emails or in-app notifications asking customers who haven’t used its platform in the past year if they want to keep their subscriptions. If a customer doesn’t respond, Netflix will automatically cancel the subscription.

Sound like a weird business move to you? It is. Netflix is actively reducing its own subscription revenue. Most companies would be happy to take their cut from their members’ bank accounts for as long as they can.

“You know that sinking feeling when you realize you signed up for something but haven’t used it in ages?” asked Eddy Wu, Netflix’s director of product innovation. “At Netflix, the last thing we want is people paying for something they’re not using. We hope this new approach saves people some hard-earned cash.”

So why are they doing it? Because they have confidence in their loyal customer base. And well…because they can. Netflix is coming off one of its strongest quarters ever. The company added 16 million subscribers in the first quarter of 2020, which was even more than they had anticipated.

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