Netflix (NFLX) - Get Report announced on Thursday that it will begin canceling memberships of inactive users. Netflix says it will begin the process by contacting customers that have not used their accounts in a year whether they would like to continue their subscription.
If the users do not respond, Netflix says they will automatically cancel the subscription. Eddy Wu, director of the company's product innovation, said in a statement: “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."
How will this move financially impact the company? Wu writes that inactive accounts represent less than 0.5% of their overall subscriptions.
Netflix reported 183 million subscribers at the end of the first quarter. The company has seen major success in terms of subscribers due to the result of many staying home because of the coronavirus.
Netflix isn't the only streaming service taking money out of paychecks. For more, here's a full breakdown of Netflix and other streaming service prices.
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