While there are several streaming platforms, Netflix remains one of the top choices for cable cutters and cable lovers alike.
Although it’s more expensive than it used to be, Netflix still has three different subscription plans to fit every budget.
As with most subscriptions, you may wonder if Netflix has a yearly payment option.
In most cases, a yearly plan ends up being less expensive than a monthly plan.
If you’re looking to save a little money on your Netflix plan, then here’s what you need to know about Netflix’s subscription plans.
Can You Pay Netflix Yearly?
No, you cannot pay Netflix yearly.
Unlike other streaming services, Netflix only has an option to pay monthly.
That said, Netflix is looking into ways to help its customers save.
One of its latest campaigns is testing a yearly plan in India.
The test gives users a 50% discount if they choose to pay a full year for their specific service.
The discount drops to 30% if they choose a six-month plan and 20% if they choose a three-month plan.
Considering that the basic plan is around $8 at the moment, basic users could end up spending around $4 per month with a yearly plan.
They’ll only need to pay around $50 for an entire year of Netflix as opposed to paying around $100 with the monthly plan.
Whether Netflix will release this yearly plan to the general public is yet unknown.
Why Doesn’t Netflix Have A Yearly Plan?
There are a few reasons Netflix hasn’t adopted an annual plan yet.
Here are some of those reasons.
1. Original Architectural Structure
Netflix was one of the first service platforms to charge a subscription fee for their services.
While the idea has been around for a long time, this is one of the businesses that made subscriptions mainstream.
Because of that, they were also one of the businesses that built the architectural structure for how subscriptions worked.
They chose their structure with a monthly plan in mind rather than a yearly plan.
Netflix hasn’t started a yearly plan yet because it would require them to change the structure of their business.
They’d need to implement new policies, new software, and new billing methods to adopt this type of payment method.
It’s something they can do, but it takes time and money to make those sorts of changes.
Since they’re already established as a monthly service, they’d need to do a lot of work to become a yearly service, too.
2. Higher Cancellation Rates
Netflix is more concerned about people canceling their service than ever before.
With more and more streaming platforms entering the market, the competition is stiff.
Beforehand, other platforms offered something slightly different than Netflix.
They weren’t as successful because they didn’t have high-quality original shows or movies.
These days, thanks to streaming platforms like Disney+ and HBO Max, the competition is a lot more advanced.
Because of that, Netflix is cautious of doing anything that makes it easier for members to cancel.
In particular, a yearly plan acts like a stopping point for many users.
It allows them to see the higher charge coming their way and determine whether it’s worth the price or not.
For casual Netflix users, they may realize that they only watched a show a few times a month.
They may have even gone months without watching Netflix.
That sort of user might choose to cancel their Netflix subscription instead of renewing it because the higher annual cost isn’t worth it.
Netflix doesn’t want its customers to weigh the value of their time with the annual price.
Using a monthly subscription is easier because it’s a smaller number.
When a user is only paying $8 or $15 a month, it seems less expensive.
If they don’t watch Netflix for a month, for example, then they feel less guilty about wasting $15 than they do wasting $100, for example.
3. Monthly Payments Become A Habit
An advantage of using a monthly payment system is that people become used to it.
They’re able to organize their budget around the payments more easily since they know they’re always going to face that charge.
Annual payments are less of a habit.
It takes a long time for the annual charge to roll around.
When it does arrive, not everyone has the budget ready for it.
That’s because it’s no longer part of their usual monthly budget.
Since they don’t have the money ready, some users might choose to cancel their Netflix subscription rather than switch to a monthly plan again.
Monthly payments are habitual while annual payments are disruptive.
Netflix doesn’t want to break the cycle or habit of paying them, so they haven’t implemented an annual plan yet.
4. Easier To Skip With Monthly Plans
One of the benefits of paying monthly for Netflix is that the user can always cancel the next month if they need to.
Economic circumstances change.
A household may have enough money to pay for Netflix one month, but then find themselves without a lot of spending money the next month.
With a monthly plan, they can easily cancel their Netflix for the next few months to save money.
Once they’re stable again, then they can easily rejoin Netflix once more.
An annual plan doesn’t have the same flexibility.
When it comes time to pay the annual price, you either pay it or you miss out.
You can always choose to rejoin Netflix later, but the higher price of an annual plan may be harder for some families to save up towards as opposed to the monthly plan.
It’s also harder to get that money back.
Paying an annual price for Netflix is an investment and a commitment.
Even though you’re paying less for Netflix overall, that might not be the case for someone who chooses to only have Netflix for a few months of the year.
Their money is going to waste since they’re not watching a full year’s worth of Netflix.
An annual plan is better suited for those who know that they’re going to watch Netflix every month.
For everyone else, the monthly plan’s flexibility is a better option.
Because of this, Netflix hasn’t quite implemented an annual plan yet.
Why Should Netflix Have An Annual Plan?
Even though Netflix only has monthly plans at the moment, there are a few reasons an annual plan might help them.
Let’s discuss why Netflix should move forward with its annual plan subscriptions.
1. Better Discounts
Although annual plans come with a higher price compared to a monthly payment, customers ultimately save more money.
If Netflix goes with a 50% discount on a 12-year plan, then users could save tons of money on their Netflix service.
That frees up more of their money through the year to purchase other things, add it to their savings, pay off debt, or even invest it.
Once customers get over that initial shock of a higher bill, they’ll love the savings they get with the annual plan.
2. Encourages More People To Stay With Netflix
When people make a higher investment, they’re more likely to stick with it.
They want to make it worth their time.
An annual plan might encourage Netflix users to keep using the service and watch new shows as they’re uploaded.
That means more money for Netflix overall.
If Netflix wants to keep its users, then having an annual plan is a great strategy.
3. Welcomes More Users To Its Service
Some people might not enjoy using Netflix exactly because it doesn’t have an annual service.
They’re aware that they can save a lot more money with an annual plan.
Because of that, they might be using services that use an annual plan already.
Whether it’s Disney+, Amazon Prime, or Hulu, they all offer yearly plans to their customers.
Those customers are happy to pay an annual price because they know they’re going to be saving money in the long run.
These same customers may dislike Netflix because they know they’re going to be paying a lot more with a monthly plan.
If Netflix were to adopt an annual plan, then it might encourage more people who want to save money for their service.
By offering both monthly and annual payments, Netflix doesn’t exclude any type of buyer.
It welcomes all of them.
Perhaps one of the biggest reasons Netflix should offer an annual plan is the competition.
Many of its main competitors have an annual plan.
If Netflix wants to stay competitive, then they need to adopt something similar.
Eventually, their customers are going to expect an annual plan in an effort to save money on their payments.
If Netflix is unable to provide them with one, then it might encourage them to use the competitors’ services instead.
Should You Choose A Monthly Or Annual Payment Plan?
In the event that Netflix does end up adopting an annual plan, you may wonder if you should make the switch.
Here are a few factors you should consider to help you decide whether you should choose a monthly or annual plan with Netflix.
The amount of time you spend on Netflix can help determine whether you should choose the monthly or annual plan.
If you don’t use Netflix that often, then you may find the monthly plan more valuable.
That way, you can easily cancel your subscription when you know you’re not going to watch it.
However, if you know that you’re going to be binging everything you can on Netflix, then the annual plan may be worth it.
The great thing about Netflix is that it’s always adding new titles to its service.
It releases original movies and TV shows every month along with older favorites.
That gives users plenty of content to watch and enjoy.
However, if you have other subscriptions to other services, then you may split your time between each one.
If that’s the case, then it may be worth keeping your monthly subscription plan to ensure you can cancel when you know you’re not going to be watching Netflix.
For everyone else who watches a lot of Netflix, an annual plan is a better way to pay.
Your budget will also determine which subscription method is best for you.
Those who don’t have a lot to spare each month may be better off with an annual plan.
It’s worth saving for the amount that you need.
Then you can pay for the discounted annual plan and not have to worry about any more payments until the next year.
If Netflix uses the 50% discount for a 12-year plan, then you’ll save considerably more every year than if you stick with a monthly plan.
However, this is only beneficial for those who watch a lot of Netflix.
Those who have a small budget and don’t watch Netflix as often should stick with the monthly plan.
This allows you to cancel the plan and save the rest of your money in the event of a change in income.
Those with higher budgets should also choose the yearly plan.
Paying for the higher price will be easier for those with a higher budget.
It’ll also save you money throughout the year.
Finally, those with incomes that change month by month may be better suited for a monthly plan.
If you don’t have a set income every month, then you never know if you’re going to have enough money to cover the bills.
Those whose employment is similar to the “feast or famine” philosophy have to be mindful of their expenses.
In that case, a monthly plan offers the most flexibility.
If you find yourself going through a rut, then you’ll want to be able
to cancel your Netflix and save what money you can.
If you already paid for the annual plan, then you can’t get that large investment back.
You may have access to Netflix, but it won’t do you any good if you don’t have enough money to pay the electric or internet bill.
How To Switch Your Subscription Plan On Netflix
If Netflix does implement an annual plan, then you may wonder how you can switch to it.
It will likely be the same method that you use to change your payment plans currently.
Follow these steps to switch your payment plans on Netflix.
1. Log In To Netflix And Go To Account
Regardless of what device you’re on, you’ll need to log in to Netflix first.
Before you choose a profile, you’ll need to find the accounts page.
You can access this either on the main screen or by clicking on a profile and looking for an account.
2. Click Plans
You’ll then see an option for plans.
Click on that and it will show you what your current payment plan is.
You’ll also see the other plans that Netflix offers.
3. Choose The Plan You Want
Click on the plan that you want to switch your Netflix to.
You should note that if you’re upgrading your Netflix, then it will occur automatically.
You’ll receive your new bill the next time your payment is due.
If you’re downgrading your plan, then the changes and the new payment price will occur on your next payment date.
If the annual plans move forward, then this is where you’ll go to choose it as a plan.
Netflix does not currently support yearly subscription plans.
However, they are testing the feature in India and potentially a few other countries.
There’s a chance that they might bring to the United States at some point.
If so, then you can follow the steps above to switch your account from a monthly plan to an annual plan.