What is Price Increase?
Definition
When a subscription service raises its pricing, affecting existing and/or new subscribers.
Understanding Price Increase
Price increases are common in the subscription industry, with many services raising prices annually by 5-15%. Major examples include Netflix, Spotify, and Disney+ all increasing prices multiple times since launch. Companies typically grandfather existing subscribers temporarily or notify 30 days in advance.
When facing a price increase, consider: 1) Is the service still worth the new price? 2) Can you switch to a lower tier? 3) Is there a competitor offering better value? 4) Can you lock in current pricing with an annual plan? Price tracking in subscription managers helps you spot increases early.
Related Terms
Subscription Fatigue
The feeling of being overwhelmed by the number of active subscriptions and the cumulative cost of maintaining them.
Subscription Audit
A systematic review of all active subscriptions to evaluate their value, identify unused services, and optimize spending.
Subscription Savings
The money saved by optimizing subscriptions through cancelling unused services, downgrading plans, switching to annual billing, or using bundles.
Cancellation
The act of ending a subscription, which stops future billing and eventually terminates access to the service.