If you’ve logged into Netflix recently, you’re probably aware that the streaming provider is about to raise your monthly rate. If you haven’t heard, Netflix is raising the price of its standard plan from $10.99 to $12.99 per month.
That’s not a steep increase, but it may seem unreasonable if you, like many Americans, are finding that the price of everything you buy is going up, but your paycheck remains the same. In the case of Netflix, there is a way for many users to avoid the price increase and actually save money each month.
By default, most Netflix users are enrolled in the standard plan, which allows you to watch Netflix in high definition on two devices at the same time. However, the service also offers a basic plan that is $8.99 per month and allows you to stream in standard definition on one device at a time.
If you go to your account settings, you can change your plan to the basic plan and actually come out ahead each month financially. If you are OK with decreased video quality and either live by yourself or you and your family watch Netflix together, this plan is for you.
However, if your teenager commonly streams Netflix on her phone while you are watching on TV at home, or if the difference in HD and Standard definition video really makes a difference to you, it may be worth the extra $2 per month.
Note, the standard plan was $7.99 before the increase and has increased to $8.99, so if you switch you’re still playing into Netflix’s price increase, but you would actually see a decrease in your monthly bill.
The price increase comes at an odd time for the streaming giant. Disney recently announced its own streaming service — with access to all the movies currently in Disney’s fabled Vault — will be priced at $6.99 per month. That service, called Disney Plus, will launch Nov. 12 and may cause Netflix users to leave for greener — and cheaper pastures.