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Depending on your subscription plan, the price hike adds up to an extra $24 or $36 you pay each year to the streaming service. Below, CNBC Select shares some ways to save on (and even benefit from) your Netflix subscription.
While you're unlikely to be happy about paying a higher monthly Netflix bill, it does mean you earn a bit more from that 6% cash back. Amex's cash back is earned in the form of Reward Dollars, which cardholders can then use as a statement credit to lower their credit card balance.
And with the U.S. Bank Cash+ Visa Signature Card, cardholders can choose to earn 5% cash back on two bonus categories each quarter, on their first $2,000 in combined eligible net purchases, then 1%. Television, internet and streaming services are counted as a bonus category and U.S. Bank's website lists Netflix as a sample qualifying merchant. Again, you can use this cash back to essentially lower your credit card bill.
T-Mobile has a "Netflix On Us" deal where qualifying cell phone plans get a free Netflix subscription. Those who aren't happy with their current cell phone provider should consider this benefit, which not only makes Netflix complimentary but also consolidates your streaming and cell phone bill.
Netflix allows you to pause your membership and come back to it. This can give you a break from the monthly subscription if you're looking to cut costs or if you're just not watching a particular show at the moment.
You just have to connect the bank account you use to pay your Netflix subscription to Experian Boost, and Experian will add your payments to your Experian credit file. Consumers can link positive payment data as far back as 24 months. Experian Boost also includes access to your FICO Score and Experian free credit monitoring that alerts you to changes on your credit report, such as new account openings in your name and balance updates.
Basic and Premium plan Netflix subscribers will now pay a little more each month for the streaming service. To help save on this cost, get a credit card that rewards streaming purchases, switch your phone plan to T-Mobile or take a pause on your subscription. And, while you're paying more for it, make sure that monthly Netflix bill is helping your credit with Experian Boost.
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
While the lack of discount codes for older adults may seem unfair, the upside is that the standard Netflix plan is affordable for most people. It allows you to enjoy various movies, shows, documentaries, and more. However, the standard plan also includes ads, which can make the viewing experience frustrating for many people. Paying a larger fee allows you to do away with the more frustrating aspects of the basic plan, though this takes a larger chunk out of your wallet.
Netflix operates on a tiered pricing model, with each tier offering subscribers a distinct set of features. Below is an illustrative table and in-depth description demonstrating the distinct subscription plans and their corresponding costs.
However, the low monthly fee comes with a few drawbacks. The most significant annoyance is the presence of ads. Ads can interrupt an entrancing show or movie, taking you out of the zone. It also forces you to waste time watching things you might not be interested in.
Likewise, some TV shows or movies may not be available with the standard plan. Another downside is that you are limited to using Netflix on no more than two devices, such as your cell phone, tablet, or computer.
Above the standard subscriptions is a premium option. This is the best and all-inclusive plan that Netflix offers. You can watch whatever you want on four supported devices. Ultra HD is available, as is Netflix spacial audio. This immerses you in your shows and movies like never before.
This is a special offer, and not all T-Mobile plans include a free Netflix subscription, so make sure you choose the right one before signing up. You can always contact a T-Mobile representative to help you make the right choice.
Another great option for saving money while still enjoying Netflix is account sharing. While Netflix might not offer special discounts for seniors, individuals with disabilities, or Medicaid beneficiaries, it does extend the courtesy of shared access among family and friends.
Recently, Netflix has made some efforts to minimize or eliminate account sharing. Many who regularly use this streaming platform have responded to this negatively. While account sharing remains a useful loophole, it may not be around forever. Many are turning to other streaming providers, such as Hulu, Amazon Prime, or Disney+, for this reason.
The popularity of platforms like Netflix often attracts fraudulent activities, with some scammers exploiting the platform to ensnare unsuspecting individuals. When confronted with offers or links promising discounts or free trials, you should be careful.
Clicking on these links may bring you to fake websites attempting to steal your information or infect your device with a virus. This can cause a lot of unnecessary stress and may even cause you to lose money.
Netflix has yet to offer a disability discount. This may make it difficult for those with disabilities on tight budgets to afford a Netflix subscription. However, the platform does offer closed captioning and audio descriptions, making content accessible to many viewers with disabilities.
Netflix does not have a dedicated Medicaid discount. Many senior citizens enjoy Netflix primarily by sharing their accounts with their friends or family. They can then use Netflix for free or at least by paying a small fee.
Understanding subscription costs and potential discounts can help you access the entertainment you love for a fair price. While Netflix might not offer senior, disability, or Medicaid discounts, avenues to optimize your streaming experience still exist. Choosing other streaming services, sharing accounts, and choosing a lower-priced plan are all options that can help you save money.
When Netflix transitioned to streaming, gradually leaving the DVD business behind, it became one of the greatest revenue-growth success stories in history. Netflix completely dominated the streaming market until its current rivals entered the market.
This is an example of the law of diminishing returns (or its equivalent, the law of increasing costs). Each additional dollar invested in advertising will have a worse marginal return than the previous dollar because it is probably directed at a subscriber who is more difficult to persuade.
Up to here, everything is fine for Netflix. However, as competitors HBO (with HBO Max), Amazon Prime (with Prime Video), Disney (with Disney+), and others enter the market, demand elasticity increases. With more substitutes, customers become more sensitive to changes in prices or content offered.
One of the problems for Netflix was that it was at the mercy of the large content distributors like HBO. It seemed that all the surplus was going to go to the owners of series and movies and that Netflix was going to take a loss.
At that point, Netflix decided to change its business from brokering content to creating content (or at least getting exclusive rights to new content). However, it is not at all easy to create winning content for an audience that is terribly critical, temperamental, and susceptible to short-term fads.
We know how much Netflix spends on producing a series. For example, the series Marco Polo cost $10 million per episode, so, before it discontinued the series, Netflix spent a total of $200 million on it. How much was this $200 million investment really worth? And what is the lifespan of a series?
This fits with the idea of economic calculation, in which accounting serves as a tool. This spontaneous order always evolves, and the way we treat investment in series and movies for accounting purposes is a good example of that.
The problem is that there is no capacity for increasing production. The streaming platforms with the most purchasing power, including Netflix, Amazon, Disney, and HBO, will demand greater film capacity. This does not include small producers of films and series, as these compete for the same resources with less purchasing power.
Production studios are delighted with the boom in film investments (I imagine UFM Film School is too), but the question is how sustainable this race to create more and more film content will be in a context of unprecedented rivalry.
At the end of 2021, the interest rate Netflix was paying was the lowest in the last five years. The drop in interest paid by Netflix came even though its debt increased from $5.5 billion to more than $13 billion in that same period. The really uncomfortable thing for the streaming giant is that if it were incredibly profitable, this debt would not have been necessary.
It is very likely that these big investments in film content will not translate to greater revenue for the companies making the investments. The only thing that is happening, for the time being, is that production costs are increasing as companies seek to attract customers in an increasingly competitive market. It is very possible that the greater investments in content will not translate to more and better series and movies.
Legal notice: the analysis contained in this article is the exclusive work of its author, the assertions made are not necessarily shared nor are they the official position of the Francisco Marroqun University.
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