What is Family Plan?
Definition
A subscription tier that allows multiple household members to share one subscription at a discounted per-person rate.
Understanding Family Plan
Family plans are offered by most major subscription services to increase household penetration and reduce churn. Spotify Family ($16.99 for 6 users), Apple One Family, YouTube Premium Family, and Netflix multi-screen plans are popular examples. Family plans typically offer 40-60% savings compared to individual subscriptions for each member.
Most require all members to reside at the same address, enforced through periodic location verification. For budget-conscious consumers, family plans are one of the most effective ways to reduce subscription costs.
Related Terms
Subscription Bundle
A package that combines multiple subscription services together at a discounted price compared to subscribing to each individually.
Subscription Savings
The money saved by optimizing subscriptions through cancelling unused services, downgrading plans, switching to annual billing, or using bundles.
Tiered Pricing
A pricing strategy where a service offers multiple plan levels with different feature sets and price points to serve different customer segments.