The 'Cancel and Wait' Trick That Can Lower Streaming Costs
Streaming may have started out promising cheaper entertainment than cable, but with many households now juggling multiple services, the total can rival a traditional cable bill. Some consumers have started using a simple tactic to keep costs down: canceling subscriptions and waiting for a discounted offer to return.
Does it work? Experts offer some considerations.
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What the 'Cancel and Wait' Strategy Is -- and Why It Works
The "cancel and wait" strategy involves canceling a streaming service and holding off on re-subscribing until a promotional rate or win-back offer appears, according to Jarie Bolander, general manager and executive partner of Decision Counsel.
"It works because streaming companies would rather discount a subscriber than lose them entirely -- especially now that prices have climbed and churn is higher."
These offers arise from sophisticated models "that predict who's likely to cancel and target those people with retention or win-back offers," Bolander said.
These companies are aware that streaming service prices have increased significantly. According to Cyrus Kennedy, certified professional behavioral analyst and chairman of The Ad Firm, "Services spend between $150 to $300 to acquire a new subscriber, but it costs far less money to reactivate one ... making retention discounts an incentive baked into their pricing models."
When Streaming Services Typically Offer Comeback Deals
Bolander said many deals appear within the first couple of months after canceling. However, "Some services also surface discounts during the cancellation process itself -- so the best deal may actually appear when you're trying to leave."
Kennedy suggested the window may be even narrower depending on the company's algorithms.
"My recommendation is 21 to 45 days after cancellation," Kennedy said. "Most services send their first retention email within two to three weeks of cancellation. The highest discount offers tend to come within 30 to 45 days of cancellation once algorithms predict you as a lost cause."
Some of the providers most likely to run comeback promotions or seasonal re-subscription deals are services like Hulu, Disney+, Peacock, Paramount+ and HBO Max.
How Much Money Can the Strategy Save?
For households paying full price for multiple streaming platforms, the savings can add up. Bolander said rotating subscriptions and capturing occasional promo rates can save $100 to $300 a year "without losing access to the shows you actually care about."
The Potential Downsides of Canceling and Re-Subscribing
While the strategy can lower entertainment costs, it does come with trade-offs. Bolander said the biggest issue is the inconvenience and the need to track billing cycles so you can remember to resubscribe.
"And sometimes you'll miss promotions or come back at a higher price if the service changed its plans while you were gone," he said.
Kennedy added that some users may lose personalization features or family access, such as their viewing history, saved lists and algorithm recommendations. "Several services delete your viewing history if the account is inactive for 90-plus days."
Cancelling may also mean losing your access to legacy pricing bundles.
How To Track Subscriptions So Streaming Doesn't Get Out of Hand
To make the strategy work, consumers need to stay organized. Bolander suggested a simple monthly review.
"[K]eep a monthly reminder in your calendar and do a quick subscription audit. Most people are surprised by how many services they're paying for that no one has watched in weeks," he said.
Kennedy recommended tracking services and billing dates in a basic list or spreadsheet with four columns: service name, monthly cost, billing date and cancellation date.
"Take five minutes to review it once per month, and you'll never have subscriptions quietly draining money from your bank account," he said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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