Netflix stops billing subscribers who have been inactive for more than 2 years
With this decision, Netflix continues to improve its image with users, even if it means losing money. On this Wednesday, July 22, 2020, Netflix is announcing a rather surprising new measure. Indeed, Netflix the streaming giant says it will soon stops billing subscribers who have been inactive for two years. The company led by Reed Hastings formalized the news in a financial document sent to its shareholders on July 16.
In the future, the termination will also be automatic when an account remains inactive for two years. The user will have no manipulation to do, Netflix is responsible for taking the initiative to cancel the contract. Anyway, this provision is amazing, knowing that it will make the platform lose money.
For the streaming service, this measure should be in effect for all subscription services: ” In a world where people are increasing subscriptions, an automatic billing pause after an extended period of inactivity should be normal,” explains- he does.
Netflix works on its image above all
In truth, this new provision is part of the platform’s policy for the past two years. Indeed, Netflix puts a high point to develop ” its policy centered on the user”. We have seen it for example with the launch of Netflix Party during confinement, a feature that allows you to watch content with friends. At the start of 2020, the platform reassured users by affirming that there would be no ads on its service.
Netflix is , therefore, betting here ” on long-term benefits which will offset the short-term costs”. You don’t really have to worry about Netflix, the financial losses caused by this measure will be minor. Inactive subscribers represent a small share of the platform’s user base.
Conversely, the image of the platform is even more strengthened, and this provision may convince users of other platforms to join the Netflix ship.