Netflix will start cancelling accounts of subscribers who have not been active on the service for more than two years, it said in a blog post. To begin with, these subscribers will receive an email and push notification asking if they would like to keep their subscription. “If they don’t confirm that they want to keep subscribing, we’ll automatically cancel their subscription,” the company said. The company said it will also cancel accounts that have not been active at all for one year after signing up. It said that it had already factored these accounts into their financial guidance for this quarter, so these cancellations presumably will not hurt the company’s results this quarter disproportionately.
Besides, Netflix can afford to let go of inactive subscribers, being one of the few companies in the world to actually benefit (for the moment) from the COVID-19 pandemic and lockdowns around the world. The company added twice as many subscribers in the March quarter than it had initially forecasted, giving it enough financial headroom to shed inactive subscribers, who it says, make up less than half a percent of its subscriber base. The company says it will still keep those users’ preferences and watch history saved for ten months in case they choose to restart their subscription.
In India, Netflix continues to limit video bitrates across all internet connections, including wired broadband ISPs, in spite of lower-than-expected traffic growth on wireless networks.