Why Netflix doesn’t care if you cancel? — they know you’ll come back, says new study

With recent price hikes and the crackdown on account sharing, many of us have felt the sting of Netflix’s new policies. Some have even decided to cancel their subscriptions in protest. However, according to a new study, Netflix isn’t particularly worried about this trend. In fact, they know you’ll likely come back.

Cancelling Netflix: A True Act of Rebellion?

As Netflix imposed restrictions on account sharing and raised prices globally, the platform faced a wave of online backlash. Thousands of frustrated users took to social media, expressing their displeasure and many decided to cancel their subscriptions as a form of protest. It seemed like a bold move—an attempt to send a strong message to the streaming giant that its decisions weren’t in the best interest of its loyal community.

But it turns out, Netflix is not as concerned as one might think. According to a study by the firm Antenna, this mass exodus of subscribers isn’t as damaging as it seems. In fact, a large number of people who cancel their subscriptions, often in the heat of the moment, end up coming back sooner or later.

Netflix’s Remarkable Subscriber Return Rate

Here’s the kicker: among those who unsubscribed from Netflix in 2023, half of them reactivated their accounts within just six months. Even more telling, 61% came back within the year. This impressive return rate gives Netflix one of the highest subscriber comeback rates in the market. Comparatively, for its competitors like Disney+ and Prime Video, only about 45% of people re-subscribe after a year.

Netflix also boasts one of the lowest churn rates in the industry, sitting at just 2%. For a platform with such a massive audience, this is a significant indicator that they are doing something right, even when it comes to frustrating subscribers.

Netflix’s Confidence: Why They Don’t Sweat the Cancellations?

So, why is Netflix so confident about its ability to weather the storm? The answer lies, in part, in the quality and strategic release schedule of its content. Often, users cancel their subscriptions because there’s nothing new or exciting to watch. But once a hot new release or a season of a beloved show drops, those same users are quick to rejoin. Netflix knows that with its constantly updating library, it has the power to lure back subscribers when they feel there’s something worth watching.

Moreover, even those who cancel out of anger or frustration often don’t stay away for long. The FOMO (fear of missing out) is real when it comes to Netflix’s new content, and many can’t resist the pull for too long.

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What Does This Mean for Netflix’s Future?

Netflix’s most recent earnings report reveals that it gained a record number of subscribers in the last quarter. Despite price increases in some countries starting in January, the platform’s subscriber base remains solid. Although some regions, like France, are currently spared from the price hikes, Netflix’s actions suggest it’s confident in its ability to raise rates without significant fallout. After all, with its loyal audience so hooked on its offerings, Netflix knows that most people will accept the price increases, even after a period of frustration.

This also signals that Netflix has nothing to fear when it comes to its competitors. While other streaming services might face more serious consequences when subscribers leave, Netflix’s ability to bring them back speaks volumes about its influence in the streaming wars.

For now, it seems Netflix has mastered the art of keeping its audience engaged—and when some decide to cancel, they know that it’s just a temporary setback. They’ll be back for the next binge-worthy hit.