The ethics of billing inactive customers

With Netflix announcing their decision to close the accounts of inactive customers, should other subscription businesses reconsider how they deal with “zombie accounts” who pay their fees but don’t engage with a service? Is the decision a strictly moral choice, or is there a financial benefit behind it too?

“You know that sinking feeling when you realise you signed up for something but haven’t used it in ages?”

This is how Netflix Director of Product Innovation, Eddy Wu, made the unusual declaration earlier this year that the streaming giant would proceed with closing the accounts of inactive subscribers. 

Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.

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Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.