Netflix stops charging customers who never watch

Re:Netflix stops charging customers who never watch by globular-toast on Saturday May 23, 2020 @04:30AM (#23281146)

The insurance company I worked at operated on a similar principle. It was well known that older customers brought in a huge amount of profit because they tended not to claim, nor do they care about getting the best deal. So while younger customers were targeted with new deals and features, the older customers were left alone and would stay on "legacy" policies for decades sometimes.

Interestingly at some point they modelled what would happen if the premiums of the older customers was increased and they reckoned they could charge some customers double and they still wouldn't switch. This could have been used to offset price cuts for younger customers and generate much more profit overall, but it was decided to be unethical so they didn't follow the model.

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Re:Netflix stops charging customers who never watch by perl4ever on Saturday May 23, 2020 @12:05PM (#23284031)

I find insurance companies are always dangling discount offers they say will save you money if you have multiple policies. I eventually decided it was a big mistake, because if you have multiple, or all, your policies with one company, you're just advertising to them that you value convenience and simplicity over shopping around. So you may get a discount line item, but you will end up paying much more.

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