From Netflix to Spotify: Are you a victim of 'subscription creep'?

You might be surprised at just how many different subscriptions you’ve signed up for — to access music, TV, food delivery, gym memberships and more. If you’re not careful you could be a victim of ‘subscription creep’ — the slow, often unnoticed growth of the number (and cost) of subscriptions a person or household signs up for. Then they suddenly realise a big chunk of their monthly budget is being eaten up by recurring subscriptions, some of which they never use.

If you take entertainment, Netflix was the mainstay streaming site, costing Dh49 a month for the standard package. But many of us now subscribe to a number of streaming sites to be able to access our favourite TV shows, latest films and sports. These include Apple (Dh27.99 a month), Amazon Prime, (Dh16), Disney+ (Dh29.99) and Starzplay (Dh35 to 40). If you love your sport and movies and box sets, then the costs soon add up.

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But subscriptions have ballooned way passed news and entertainment sites and gym memberships. Some delivery apps offer monthly subscriptions for their premium services like Careem (Dh19). And now there are a host of AI-based apps that we are beginning to depend upon such as ChatGPT Plus (Dh72).

With so many different services, it’s easy to lose track of all those automatic debits. Some companies intentionally make it difficult for consumers to cancel a subscription, knowing many people will stay subscribed longer if cancelling the subscription is complex. 

Work and play

Marketing strategist and consultant Annie Meikle spends around Dh1,000 a month on various subscriptions, although most are needed for running her own business. On a personal level she subscribes to a handful of newspaper websites and streaming platforms, along with budgetting software. On the work front, the list includes Google Suite, Adobe, Canva, Otter, Substack and Zoom.

“I used to have a lot more like Spotify, a personal training app, and some group coaching memberships but I’ve cut down on those and haven’t really missed them. I have become more stringent about subscriptions over the past few years and only sign up if I know I’m going to use them,” she says.

She was once charged $400 from a French technology company whose software she trialed which then charged her an annual fee. “I researched French consumer protection law and threatened to take action with the equivalent of the Better Business Bureau there and was refunded.”

Help at hand

The problem has become so bad that there are now a host of apps and websites to help you manage your subscriptions. Apps like Rocket Money (formerly TrueBill) can help consumers see what subscriptions they’re paying for. Monarch Money is a finance app with integrated subscription tracking, alerts and budgeting tools. Others include Bobby, Track My Subs, and Subby which is an Android app that will help you keep track of your subscriptions and remind you when a payment is due. Personally, I have most of my subscriptions via my Apple account so they are in one place and easy to cancel. 

Tips to avoid subscription creep

But of course these apps also require subscriptions, even though they are designed to help you manage your money better. Here are some alternative ideas:

Rotate subscriptions: Entertainment streaming services are a top contributor to subscription payments. To reduce your spending, try cancelling all streaming subscriptions, then rotate between services so you’re only using one platform per month. 

Free trials: Getting a free month of streaming or delivery might sound like a great deal, but many free trials automatically convert into a year-long subscription if you forget to cancel by a certain date. Set a reminder two days before the free trial ends.

“Having been burnt numerous times by annual fees after a 30-day trial, I now put a recurring note in my digital calendar when I sign up for a trial subscription so I remember to cancel,” says Meikle. “Recently I forgot to do this with Fireflies.ai which cost me about Dh100 (that was a monthly fee). There should be better protection to make it easier to cancel and also to give consumers a grace period should they forget the end of the trial.”

Customer protection

There are no specific UAE laws around subscriptions, free trials and grace periods so you should read the subscription terms carefully before signing up. If you forget to cancel, a message to the customer services department is always worth a shot.

“I’ve noticed lots of apps make it really time-consuming and confusing to cancel a subscription. For one thing, it’s not a clear option in settings,” says Laaleen Sukhera, a communications consultant and founder of Social League. “So many subscriptions not only add up monetarily, they also clutter the mind and add to stress.”