How many of us really track everything that we’ve subscribed to? With auto deductions from our bank accounts, sometimes we don’t even know what we’re paying for. That’s why Netflix’s move to cancel inactive accounts is such a world changer.
Instead of accepting payments from inactive accounts, the steaming service provider will cancel all inactive accounts. The company will take a hit revenue wise but what the great customer goodwill generation is worth lots more.
“You know that sinking feeling when you realise 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,” wrote Eddie Wu of Netflix.
All who have not watched anything on Netflix for the past year will be asked if they want to continue subscribing. The same applies to those who have stopped watching for more than two years.
The notifications will go out this week and those who do not indicate that they want to continue using the service will have their subscriptions automatically terminated.
To make it easy to onboard again, those who cancel their account and rejoin within 10 months will still have their favoruites, profiles, viewing preferences, and account details just as they left them.
“These inactive accounts represent less than half of one percent of our overall member base, only a few hundred thousand, and are already factored into our financial guidance. In the meantime, we hope this new approach saves people some hard earned cash,” said Wu.
What a statement! At such a diffifult time for many, every cent counts.
Let’s hope telcos and software services companies will pay attention and make similar moves.