WSJ Your Money Briefing

Episode: When a Lifetime Subscription Is Worth It – and When It's Not
Date: February 20, 2025
Host: Mariana Aspuru
Guest: Nicole Nguyen, WSJ Personal Technology Columnist

Episode Overview

This episode dives into the increasingly common offer of “lifetime” subscriptions for apps and services. Host Mariana Aspuru is joined by WSJ columnist Nicole Nguyen to help listeners figure out if these deals can save money in the long run or if they come with hidden risks. The conversation covers business motivations, consumer math, pitfalls, and real-life strategies when considering a lifetime versus monthly subscription.

Key Discussion Points & Insights

Why Are Subscriptions So Popular Now?

• Business Model Motivation:
  Companies prefer recurring payments. Monthly subscriptions bring in steady revenue and entice customers with low up-front fees.
  • Nicole Nguyen (02:16):
    “It's a really good business for companies to get your money month after month. It allows them to charge a lower cost up front, which is entic[ing]... The problem is consumers are really bad at unsubscribing and companies are betting that we will forget or that the friction to unsubscribe is so large that we won't and they can continue to eat into our wallets.”

Accidental Renewals Happen to Everyone

• Personal Anecdote:
  Mariana relates forgetting to cancel after watching the Grammys.
  • Mariana Aspuru (02:45):
    “I got a subscription to watch the Grammys a little bit ago and guess what? It just renewed. I was like, oh my gosh.”
  • Nicole Nguyen (02:56):
    “Yeah, they gotcha.”

Benefits of Lifetime Subscriptions

• Upfront Reflection and Savings:
  Taking the leap can force you to consider value before committing. Once paid, you don’t have to worry about ongoing bills—if you keep using it.
  • Nicole Nguyen (03:05):
    “It forces people to really pause and reflect on whether or not that service is useful in their life... Another benefit is it just gets rid of that monthly fee. You don't really have to worry about these recurring costs adding up over time. If you can stick with the service and amortize that cost, then it can save you money.”

Downsides and Risks

• Company Instability & Obsolescence:
  The main risks are the company shutting down, being acquired, or being left behind by tech giants (e.g., Apple or Google).
  • Nicole Nguyen (03:41):
    “One downside is that the company ceases to exist in a shorter amount of time than you expected… Another downside is maybe a bigger tech company copies that app idea and offers it to you for free or at low cost. Both Apple and Google have been guilty of this… without that reminder hitting your credit card bill every month ... you might be less motivated to use it.”

The Real Cost of “Lifetime:” Math and Perspective

• Price Ranges:
  Lifetime fees can range from less than $50 to several thousand dollars, depending on the service or product.

  • Nicole Nguyen (04:33):
    “At the low end, under 50 bucks. At the high end, over $1,000, sometimes thousands. But these services range from a little widget that makes your home screen really cute to like increased acceleration on your electric [vehicle].”

• Decision-Making Math:

  • Nicole Nguyen (05:01):
    “If there's an annual fee, divide that lifetime fee by the annual fee and that'll tell you the number of years that you need to use the service to even balance the books, to break even. Ideally, you want to use the service longer than that amount of time to actually extract value. And the companies are betting that you won't. So do prove them wrong.”

The “Lifetime” Misconception

• Reality Check:
  Most so-called “lifetime” subscriptions are really “long-term,” with no promise the company or product lasts a human lifetime.
  • Nicole Nguyen (05:35):
    “In the year 2025, things on the Internet are not guaranteed to be forever. A company can be acquired, it can be closed down and shut down ... So I think that they should be called long term subscriptions because you're really making an investment on the next several years and not your lifetime, but the company's lifetime.”

Cancellation and Refunds

• Consumer Rights:
  Once you buy, you’re typically locked in—no refunds if you change your mind, but the company can still cancel on you.
  • Nicole Nguyen (06:19):
    “In almost all of the examples that I looked into, no, you cannot cancel a lifetime subscription unless you do so immediately and make a very lovely plea via written email... But no, they are not cancelable but accompanied beneath can cancel on you if it decides to shut down or stop supporting the lifetime agreement.”

When NOT to Buy a Lifetime Subscription

• High-Risk Categories:
  Avoid lifetime deals for essential, security-focused or infrastructure-heavy services like cloud storage, VPNs, and password managers.
  • Nicole Nguyen (06:51):
    “If it's too good to be true, then it probably is. Two examples where these kinds of services have extremely high recurring costs… are in virtual private networks and cloud storage solutions. You do want to pay a monthly fee because otherwise those companies are cutting corners in other ways, potentially compromising your security and privacy... I also pay for my password manager because security threats are new and ongoing... I like to give a password manager my business so that it can fund their research into continuing to protect my most valuable digital asset.”

Notable Quotes & Memorable Moments

• “It's a really good business for companies to get your money month after month... consumers are really bad at unsubscribing.”
  — Nicole Nguyen (02:16)
• “If you can stick with the service and amortize that cost, then it can save you money.”
  — Nicole Nguyen (03:05)
• “A company can be acquired, it can be closed down and shut down… I think that they should be called long term subscriptions because you're really making an investment on the next several years and not your lifetime, but the company's lifetime.”
  — Nicole Nguyen (05:35)
• “If it's too good to be true, then it probably is... you don't really want to be messing with that [for cloud storage and VPNs].”
  — Nicole Nguyen (06:51)
• “Do prove them wrong.” (On outsmarting companies with careful math.)
  — Nicole Nguyen (05:01)

Timestamps for Key Segments

• 02:16: Why companies love subscriptions & consumer forgetfulness
• 03:05: Benefits of lifetime subscriptions
• 03:41: Downsides and risks
• 04:33: How much lifetime subscriptions cost
• 05:01: The break-even calculation
• 05:35: “Lifetime” ≠ forever
• 06:19: Can you cancel a lifetime subscription?
• 06:51: Categories to avoid for lifetime deals

Takeaway

Before buying any “lifetime” subscription, do the math, consider your usage, and investigate the company’s stability. Be especially wary of lifetime deals for services where security and ongoing upkeep matter most—a monthly investment there is often the better choice. Despite the alluring promise, remember: it’s usually not your lifetime, but the company’s.