Amidst everything happening in today’s world, the online streaming service Netflix had decided to cancel inactive accounts for their idle customers. Perhaps this is due to competition coming online for comparable services. The arrival of HBO Max is going to take away some customers organically as well.
Most people sign up for services like these then set it and forget it. Perhaps they first thought they would be watching more online. You would think people would since many are left at home with not much else to do. Certainly some people are pinching their pennies and using those precious dollars for something else like food.
From what is understood, Netflix is now laser focused on canceling out dormant accounts otherwise known as “zombie accounts”. If someone hasn’t watched anything over the past year, then their account is automatically going to be considered zombie status. Of course a warning will be sent out to them with their contact information first. These will come in the form of an app or email response initially.
Starting soon, individuals will have to make their choice whether or not they would like to keep their service. The director of product innovation Eddy Wu said the following:
“We’re asking everyone who has not watched anything on Netflix for a year since they joined to confirm they want to keep their membership. And we’ll do the same for anyone who has stopped watching for more than two years.”
As of March 31st, Netflix reported a total of 182 million subscribers currently enrolled. This in actuality amounts to less than half of 1% of their total subscribers. This “free money” in a sense is something people might need elsewhere. Perhaps it is morality but Netflix as a company doesn’t want to continue getting something for nothing. However, there might be another reason for this instead. It might be due to the company expecting revenue to drop soon and this is their way to cope with such a loss.
They of course welcome these customers back if they are going to actually use their services. Otherwise, maybe something else online might be a better option for them. Netflix just enjoyed one of its strongest quarters ever and racked up another 16 million subscribers in Q1 this year alone, it’s tough to imagine the company might be headed towards any kind of financial troubles. That being said, many companies have gone out of business in recent times due to the pandemic worldwide. At least people can stay at home and be entertained? Time will tell.