CNBC reports that Netflix is asking "customers who haven’t used its platform in the past year if they want to keep their subscriptions," and if they don't respond, Netflix will cancel those subscriptions.
The story points out that this is an unusual step for a subscription-based service for which numbers are a major selling point, but it also "shows a measure of confidence in Netflix’s value proposition for customers."
Here's the remarkable thing: "Netflix said that its inactive accounts represent less than a half of one percent of its overall member base."
Netflix reported 183 million subscribers at the end of the first quarter.
- KC's View:
Those are remarkable numbers … and I suspect that Netflix uses them to great effect when selling its service to creative types as a place where they should bring their projects.
They're getting interesting stuff. I haven't seen it yet, but this looks intriguing:
And this trailer just dropped for a new Charlize Theron action flick that is coming to Netflix:
And, of course, this is out next week:
I'm still mad about Spenser: Confidential, but I'll forgive (though I won't forget).
I do think there is a lesson here for retailers.
If I were a retailer and I were trying to differentiate myself (especially if I were an independent), I would be talking about how total numbers are less important than dedicated numbers … how my store is an ideal environment for products that are special, as opposed to just-another-SKU … and I'd be looking to create supplier relationships that are beyond transactional.