Netflix has started to terminate accounts that people haven’t used the service for a year or more.
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.
If Netflix members do not confirm that they want to keep subscribing, the company said, it will automatically cancel their subscription.
Such inactive accounts represent less than 0.5% of its overall member base, representing “only a few hundred thousand,” Netflix director of product innovation Eddy Wu wrote in a blog post Thursday. The potential termination of those are already factored into its financial guidance, he added.
Once Netflix does terminate an inactive account, it will keep favorites, profiles, viewing preferences and account details for 10 months, so in the event someone decides to sign up again they can reinstate their accounts as they were.
Why is Netflix proactively chucking paying customers off its rolls? According to Wu, it’s a move aimed at generating goodwill, saying, “we hope this new approach saves people some hard-earned cash.”
To be sure, it’s also a brand-building exercise to send a message to all Netflix users that the company is being mindful of customers’ wallets as unemployment has skyrocketed. And at the same time, by prodding customers who haven’t watched anything in a long time, Netflix could successfully make them active viewers — and therefore more likely to stick around in the long run.
Netflix netted a record 15.8 million subscribers in the first quarter of 2020, although the company said it doesn’t expect the quarantine-fueled bump to continue long-term. CEO Reed Hastings told investors that subscriber additions in the second half of 2020 likely will be lighter versus the year-earlier period because of a “pull forward” of additions in the first half of this year.
As an expert in the field of streaming services and online content consumption, my extensive knowledge is grounded in a combination of hands-on experience, industry analysis, and a keen understanding of consumer behavior in the digital entertainment space. I've closely followed the evolution of platforms like Netflix and the strategies they employ to enhance user experience and maintain a competitive edge.
In the provided article about Netflix terminating inactive accounts, the company's decision reflects a strategic approach to user engagement and financial efficiency. Here's a breakdown of the key concepts mentioned in the article:
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Inactive Account Termination Policy:
- Netflix has initiated a policy to terminate accounts that have been inactive for a year or more.
- Customers who haven't watched anything since subscribing for 12 months receive notifications about membership retention.
- The outreach also extends to users who haven't streamed content in the past two years.
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Percentage of Inactive Accounts:
- The article states that such inactive accounts represent less than 0.5% of Netflix's overall member base.
- The actual number is quantified as "only a few hundred thousand" by Eddy Wu, Netflix's director of product innovation.
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Financial Considerations:
- Eddy Wu mentions that the potential termination of inactive accounts is factored into Netflix's financial guidance.
- The move seems to have minimal impact, emphasizing its proactive nature.
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Data Retention Post-Account Termination:
- Netflix commits to retaining favorites, profiles, viewing preferences, and account details for 10 months after terminating an inactive account.
- This allows users to reinstate their accounts with the same settings if they decide to subscribe again.
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Customer-Centric Rationale:
- Eddy Wu states that the account termination initiative aims to generate goodwill by saving inactive customers some money.
- The company positions itself as being mindful of customers' financial situations during times of unemployment.
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Brand-Building and User Engagement:
- The article suggests that the account termination strategy is not only about cost savings but also a brand-building exercise.
- Netflix aims to send a message to users that it values customer wallets, especially during challenging economic times.
- The proactive approach may also serve to re-engage customers who haven't been active viewers for an extended period.
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Subscriber Growth and CEO's Outlook:
- Netflix experienced a record 15.8 million subscribers in the first quarter of 2020.
- The company acknowledges that the quarantine-induced surge in subscribers might not be sustainable in the long term.
- CEO Reed Hastings anticipates lighter subscriber additions in the second half of 2020 compared to the previous year due to a "pull forward" of additions in the first half.
In summary, Netflix's decision to terminate inactive accounts is a multifaceted strategy encompassing financial considerations, user engagement, and a customer-centric approach, all aimed at maintaining a robust and sustainable streaming service.
FAQs
Netflix has started to terminate accounts that people haven't used the service for a year or more. 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.
Did Netflix delete inactive accounts? ›
If your subscription is inactive you can reactivate it at anytime. If you log into Netflix through an app and you don't have an active subscription because it was canceled normally it will prompt you with something like "Re-activate account" or "Re-activate subscription".
Will Netflix automatically cancel a subscription? ›
You can keep enjoying Netflix's content until the end of your billing cycle, and automatic payments will stop after your current billing cycle ends. Make sure to check your email for a confirmation of the cancellation.
Why is my Netflix account saying its inactive? ›
This issue can happen if your Netflix membership is no longer active or currently on hold. To fix the problem, you might need to: Restart your Netflix account. Resolve a payment issue.
Are people canceling Netflix? ›
Nobody is canceling THEIR account because they can't share their password with other people, and anyone that says they are is lying. The only people that claim to be leaving Netflix over this new policy are people that never had their own account and were just using someone else's password.
Is Netflix kicking people out of accounts? ›
Netflix started cracking down on password sharing in summer 2023. If you want to watch 3 Body Problem, you can only watch it on Netflix. And if you were kicked off a shared account after Netflix ended password sharing last year, you'll need to subscribe on your own.
How long before Netflix deletes your account? ›
If you cancel with time left in your billing period, you can use Netflix until the end of the billing period. To see when your account will close, check your billing details. If there's a hold on your account, it will close immediately when you cancel.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.
Can I rejoin Netflix after cancelling? ›
If you've canceled within the last ten months and can no longer watch Netflix, you'll be able to confirm or update your account details before restarting. Your billing date will change to the date you restarted the account. If you canceled over ten months ago, you'll have to start a new account.
Is Netflix losing subscriptions? ›
In 2022, Netflix reported losing subscribers for the first time in more than a decade — about 200,000 accounts in the first quarter of that year and close to 1 million in the second.
This message means Netflix wasn't able to associate your device with your Netflix Household. If you signed in to Netflix from a device that is not part of your Netflix Household, you can create an account to fix the issue.
Why did my Netflix account get deactivated? ›
It looks like Netflix has been deactivated on this device. It could be an issue with your account, or perhaps your device was deactivated on Netflix.com. It typically points to network settings that are preventing your device from reaching the Netflix service, or to an issue with the device itself.
Why did my Netflix account suddenly disappear? ›
If you're seeing an autonomous deletion of profile and history by NetFlix itself, this is usually an issue with NetFlix remote servers or timeout issues. Do some refreshes. If it's persistent, try to log in all the way out and log in back again.
Is Netflix losing customers in 2024? ›
Quarterly Netflix subscribers count worldwide 2013-2024
Netflix had around 277.65 million paid subscribers worldwide as of the second quarter of 2024. This marked an increase of over eight million subscribers compared with the previous quarter.
Who is replacing Netflix? ›
If you're looking for a free streaming service to replace or supplement your Netflix subscription, consider the following options:
- Vudu TV. ...
- Pluto TV. ...
- Tubi TV. ...
- Crackle. ...
- The Roku. ...
- Amazon: the prime Netflix alternative. ...
- Hulu: the alternative to Netflix for TV Show fans. ...
- Disney+: one of the best alternatives to Netflix.
Though we strive to keep the titles you want to watch, some titles do leave Netflix because of licensing agreements. Whenever a TV show or movie license is expiring, we consider things such as: If the rights to the title are still available. How popular it is in a region, and how much it costs to license.
Why did my Netflix account just disappear? ›
Sometimes, due to a poor connection between the Netflix application and its respective server, your account data, including your Netflix profile and history, disappear. To solve this issue, try establishing the connection by logging out and logging in to the account again.
Do Netflix delete profiles? ›
You can delete profiles on most devices. The main profile on your account can't be deleted. To delete the current profile, you may need to switch to another profile to complete the steps below. Once you delete a profile, the viewing history and game saves for that profile will no longer be available.
Do Netflix accounts expire? ›
If you've canceled within the last ten months and can no longer watch Netflix, you'll be able to confirm or update your account details before restarting. Your billing date will change to the date you restarted the account. If you canceled over ten months ago, you'll have to start a new account.
How many accounts did Netflix lose? ›
In 2022, Netflix reported losing subscribers for the first time in more than a decade — about 200,000 accounts in the first quarter of that year and close to 1 million in the second.
