It was just announced today that Netflix will raise it’s monthly fee from $7.99 to $9.99 beginning next month. Moreover, most of the 17 million customers who will be affected don’t even know it yet. So, I went on a hunt to see if my account would be increased. I’ve been such a zombie about this automatic payment that I had to request my password to login. Once logged in, it appears that my pricing schedule is good until May 9, 2016, which probably means I’m due for the increase.
Sure, the $2/month increase doesn’t seem like much, especially to those who aren’t money conscious. And, at $7.99 or $9.99 it seems pretty inexpensive, but it’s still about $96/year and will be $120/year. If I invested the $120 into my Lending Club account, I would make approximately 8% and at the end of the year would have almost $130. If I saved this for 10 years it would compound and I would have $2,137. This is an indication that Netflix is a waste of money for me especially since we only watch House of Cards.
This news began a conversation with the husband about how we really DON’T even use Netflix–at all. In fact, as mentioned before the ONLY thing we watch is House of Cards. We’ve decided to cancel the service regardless of the price increase. Adios Frank Underwood we’re investing ourselves.
Speaking of investing. It also appears for those of you holding stock in Netflix, Inc. (NFLX) won’t see an uptick in your holdings. Read more about projected Netflix stock in Dan Burrows online article “Coming Price Hike Doesn’t Mean Squat for Shares–Cancellations Should be Minimal and Already Baked Into NFLX Stock.”
After this analysis, I actually feel guilty for keeping Netflix for so long. So, will you be keeping Netflix? Do you have an automatic payment that you forget about? Did you already drop Netflix years ago when you made the decision to be Financially Independent?