The ease of cancellation and rejoins is evidenced by the fact that approximately one-third of gross subscriber additions are former subscribers who have rejoined the service, many within the same year. We have made it very easy to exit and rejoin our service and believe that this type of consumer-friendly approach to providing our service has benefited our overall consumer appeal. We do not require long term commitments from our subscribers. Our service is offered on a month-to-month basis. The churn metric is a less relevant and reliable measure of business performance, and does not accurately reflect consumer acceptance of our service. Management believes that in a largely fixed-cost streaming world with ease of cancellation and subsequent rejoin, net additions provides the most meaningful insight into our business performance and consumer acceptance of our service.
In July, Netflix responded by saying that churn doesn't really matter - especially now that it's moving more toward a streaming business: Account icon An icon in the shape of a person's head and shoulders.
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