Subscriptions Everywhere! Clean Up Those Forgotten Monthly Fees | WSJ

Summary

The video explains how subscription fees have expanded from media services like newspapers and streaming platforms to everyday devices and gadgets, driven by cloud technology and companies’ desire for recurring revenue. Many people underestimate how much they spend each month, often forgetting unused subscriptions. The speaker encourages viewers to regain control by reviewing bank or credit card statements, making a complete list of subscriptions, and canceling those they no longer use. Helpful tips include using app store settings for easy cancellations and setting a yearly calendar reminder to repeat the process. The message highlights how small monthly charges quietly add up over time.

Takeaways

• 😀 Subscriptions are becoming ubiquitous, covering everything from magazines and video streaming to smart home devices.
• 💸 Monthly and yearly subscription models are growing as companies seek recurring revenue, benefiting both them and Wall Street.
• 📱 The rise of Software as a Service (SaaS) is driving subscriptions in tech products, where even hardware is supported through cloud services.
• 📅 Most subscription services are tied to ongoing cloud updates, and users are charged for additional features or content access.
• 💳 Many consumers underestimate their total monthly subscription costs, with 84% of Americans unaware of how much they’re paying.
• 📝 It's crucial to create a list of all subscriptions by checking your bank or credit card statements to track spending.
• ❌ Cancel unused subscriptions to save money. Simple cancellations can often recover significant amounts, like $20 a month.
• 👨‍💻 Many companies make it easier to cancel subscriptions thanks to a 2018 California law requiring online cancellation methods.
• 📱 On Apple devices, cancellations can be managed through the iTunes & App Store settings, making it more convenient for users.
• 📅 Set an annual reminder to review and cancel subscriptions to prevent unexpected charges, especially after free trials convert to paid plans.

Q & A

What is the primary issue discussed in the video script?

The video highlights the increasing number of subscriptions people are paying for, from newspapers to gadgets, and how this trend is getting out of hand.

Why have companies shifted to charging monthly or yearly subscriptions?

Companies have turned to subscription models because of advancements in technology, allowing for continuous updates and services, and the financial benefit of recurring revenue, which provides predictable income.

What is Software as a Service (SaaS), and how does it relate to the subscriptions mentioned?

SaaS refers to software that is delivered and updated through the cloud. In the video, products like the Ring doorbell are mentioned, where users pay a subscription for ongoing services like cloud storage and software updates.

How does the increasing number of connected devices contribute to more subscriptions?

As more devices like routers and workout equipment connect to the internet, companies are offering ongoing services tied to those devices, resulting in more subscriptions for consumers.

What is the psychological reason why many people don't cancel their subscriptions?

Many people forget about their subscriptions, and the automatic nature of recurring payments makes it easy to overlook. This is further compounded by the fact that cancellations can be a hassle, leading to an 'out of sight, out of mind' mentality.

How much do Americans typically underestimate what they pay for subscriptions?

According to the video, 84% of Americans underestimate the total cost of their monthly subscriptions, often not realizing how much they’re spending.

What is the first step in cleaning up your subscriptions?

The first step is to make a list of all your subscriptions by logging into your credit card or bank accounts and noting what services you're paying for each month.

Are there any services that help you identify subscriptions automatically?

Yes, services like Trim and Truebill can help you identify and track your subscriptions, but the video mentions that the speaker personally prefers not to give such services access to his bank account.

How can you cancel unwanted subscriptions more easily?

Many companies have made cancellations easier, especially after a 2018 California law required online cancellation options. For iPhone users, subscriptions can be canceled directly through the iTunes and App Store settings.

What preventive measure does the video suggest for managing subscriptions in the long run?

The video recommends setting a yearly reminder in your calendar to review and cancel any subscriptions you no longer use or need, especially to avoid the issue of unnoticed recurring charges from free trials.