“Are you still watching?” The answer for many of us recently is inevitably “yes”. Although for the few “inactive” users, their monthly spending is about to decrease.
Inactive Netflix Accounts
The majority of us are guilty of being careless in some aspect of personal finance management. Whether it is forgetting to cancel that free trial or still paying for an old SIM card we never cancelled, our laziness often costs us. However, Netflix is lending a helping hand to help lazy users with their personal finances. Whilst most people are glued to their Netflix accounts in recent months, a small percentage of Netflix accounts are “inactive”. “Inactive users” are all users who have not watched anything in the year since signing up. This is such a small percentage, in fact, that they barely make up 1% of all users. However, at a monthly cost of between £5.99 and £11.99, the savings do add up. In addition, if a user wants to resubscribe in the future, they will still have access to personalised viewing preferences.
How can Netflix afford to be Philanthropic?
Netflix will be losing about 1% of its user base, with an average monthly fee of between £8.99. However, with new users during lockdown, these figures are unlikely to have negative ramifications. The streaming giant has experienced a huge surge in users as people take to their homes. The already thriving streaming giant has gained over 16 million new users thanks to lockdown. Demand has been so high that they have had to reduce quality to ease the burden of internet providers.
How has Netflix stayed ahead of the game?
Netflix has managed to secure vast amounts of new users despite the sector becoming more competitive. They have competed with Amazon Prime, HBO and Disney + who gained 50 million new users in 6 months. Part of that is due to the type of content they are producing. After years in the industry, Netflix are the experts of binge-worthy content. Tiger King was the documentary everyone was speaking about, reaching 64 million households. Reality show Love is Blind reached 30 million viewers and Netflix Original Spenser Confidential was viewed by 85 million.
The second key factor is sheer volume of content. Although the streaming giant is starting to resume production in some countries, Netflix has announced that they have enough content for the rest of the year. Many Netflix Originals are in post-production and can still be launched. They have guaranteed that over 200 projects are currently being worked on remotely, assuring their viewers that there will be plenty to watch going forward. It also makes the probability of inactive users far less likely.