Why does Netflix cancel inactive users contracts? Doesn't that harm Netflix itself?

Au
9

Is this a PR campaign, does it have an economically meaningful background or what is behind it?

Gu

Where did you get the info from?

Au

https://www.derstandard.de/story/2000117630716/netflix-wirft-inaktive-kunden-raus

Ne

What does Netflix have from "file corpses"?

Au

Money

el

"Apparently Netflix wants to demonstrate strength and self-confidence with the announcement." The last thing we want at Netflix is that people pay for something that they don't use, "the author of the blog post writes."

You are quite right with the PR campaign, because it has a sympathetic effect on consumers when Netflix "protects" users from losing money. The fact that Netflix has so far not done anything against sharing accounts with friends, for example, gives Netflix sympathy points that are needed to remain in the hard-fought streaming market. I would not rule out that it might have positive long-term economic effects.

https://www.businessinsider.de/wirtschaft/verbraucher/netflix-will-inaktiven-kunden-automatisch-kuendigen/

Ne

Inactive people don't pay anything either.

Au

Yes, they pay monthly contributions, just don't watch!

Ne

Then they are not "inactive". There's an account movement.

Sa

On the one hand, it is customer-friendly if someone does not have to continue paying. There are also people who have completely forgotten that they have an account (and do not look at every bank move).

On the other hand, this can also be part of a motto: You only pay when you want to. No long term contracts. Cancellation possible at any time. Not like it used to be with Premiere or telephone contracts.

And last but not least, it may (!) Also have statistical reasons. "50% of all Netflix users saw the XY series". If there are 20% filing corpses here, that would be less. So it's about advertising arguments.

Similar to (print) newspapers or magazines that publish a large number of free copies (e.g. At educational institutions, opinion leaders, business customers), only to be able to say: we have so many readers.

But it can also be about server performance. Ultimately, streaming consumes a lot of resources. If you now have 20% file corpses that may suddenly turn on at a super premiere, this can lead to problems. So: It is better to count on those who are actively involved, there are fewer fluctuations and if many new ones are registered, you are warned.

And there's another reason: environmental protection. As I said: Streamig is extreme resource consumption on the Internet. The Fridays strikers in particular are the biggest enemies of the environment here, who in about a few years have the grandfather's environmental record.

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