Netflix announced on May 21 (local time) that it will automatically cancel if there is no confirmation of the intention to continue the subscription by sending a notification to viewers who do not subscribe for anything for a certain period of time. Netflix says what they don’t want the most is paying for what they don’t use, and hopes it can save people hard-earned cash.
Netflix’s sending notification emails are for people who haven’t seen anything or stopped watching for more than two years after the contract. This message is notified by email or application.
Netflix says these inactive members are hundreds of thousands of users, less than 0.5% of all users, and are already included in earnings forecasts. What Netflix thinks is that it is easy to register or cancel. This is why it is easy to return by leaving your favorites, profile display settings, and account information for 10 months after account closure. Watching records are also stored within this period.
Various subscriptions, mobile phones, SIM contracts, etc. frequently occur when they are not in use and forget to cancel and pay for several months. However, it can be said that it is quite impressive that the service provider proactively informs the dormant user of the cancellation or return of the fee.
However, Netflix’s paid members increased by 15.77 million from the end of December 2019 in the settlement of January-March of this year, and net profit for the same period recorded $79.69 million, more than double the same period of the previous year. In other words, Netflix is one of the companies that benefited from the spread of Corona 19 infection. You will have more room than those that don’t.
Of course, Netflix is not optimistic about this momentum, and in a letter to shareholders, mentioning the prospect that growth will slow after city blockades are lifted, or that the number of viewers will decrease and the number of members will slow down after waiting for home soon. It can be seen that there is a purpose to prevent loyalty decline by increasing user preference before it is too late in the state of the downwind. Related information can be found here .