[Asia Economy Reporter Seulgina Jo] Netflix has announced that it will begin canceling subscriptions for customers who have not used its video streaming service in the past year if they do not respond when asked whether they wish to maintain their membership, CNBC reported on the 21st (local time).
In a statement released that day, Netflix said, "We are currently asking all customers who have not watched anything for one year after subscribing whether they want to keep their membership," adding, "We will do the same for customers who have not watched videos for more than two years." Inactive customers will go through this confirmation process starting this week via app notifications and emails.
This move is considered highly unusual for subscription-based companies. Major foreign media outlets analyzed it as an example showing Netflix's strong confidence in its loyal customer base. Netflix explained that the number of inactive customers accounts for less than 1% of total subscribers and is already reflected in its financial guidance. As of the end of the first quarter, Netflix's global paid subscriber count stood at 183 million.
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