April 2024: YouTube TV has confirmed it will hike its monthly subscription price for the first time in almost three years, a move likely to polarize sentiments among users. Starting April 18, the price of YouTube TV’s base subscription plan is going up from $64.99 to $72.99, an $8 raise that represents a 12.3% increase.
The current price increase is the latest of the series of adjustments YouTube TV has gone through since it launched its services in 2017. With the streaming services seeing an increase in operational costs, including licensing fees to host exclusive content, this move was expected. Representatives for YouTube TV hastened to add that this move was based on the increasing costs of content and the investment they were putting into the quality of the service. In a statement sent out to subscribers, YouTube TV noted, “As content costs have risen and we continue to invest in the quality of our service, we are updating our price to keep bringing you the best possible service.”
Price Increase for Both Old and New Subscribers
Existing subscribers will feel the price change starting mid-April when their next billing cycle reflects the increased rate. New customers already pay the increased rate. In a move to take some sting off the change for customers, YouTube TV is reducing the price of its 4K Plus add-on from $19.99 to $9.99 per month. This could be seen as a way to appease subscribers with this $10 price drop, particularly the ones seeking higher-grade 4K content in their streaming experience.
What’s behind the price hike?
While this is a development many would say could be because of that multi-billion-dollar deal the platform inked with the NFL for exclusive rights to NFL Sunday Ticket, reportedly valued at US$2 billion per year, YouTube TV has come forward to debunk this theory. It’s because of the rising costs associated with content licensing and continuous improvements in the user experience, says the company.
“We are committed to offering a premium way for you to stream TV, but understand this new price may not work for you. We do hope YouTube TV continues to be your service of choice, but we want to give you the flexibility to cancel at any time,” the company added
YouTube TV’s Competitive Position in the Streaming Market
While YouTube TV is hiking prices, it’s worth noting the service is not alone in doing so. In recent months, streaming services such as Hulu, FuboTV, and Sling TV have also raised their prices. Hulu increased the price of its Live TV bundle last December, while Sling TV did an increase last November. Considering this trend, the YouTube TV move might be one of mere adjustments to remain competitive, given the current streak.
Moreover, YouTube TV has been making efforts to improve its features in order to justify the higher price point. One such feature is its multiview option, which allows users to watch up to four live games simultaneously. This feature, aimed at sports fans, was recently announced and is still being tested.
Long-term Consequences of the Price Hike
The recent price hike may encourage a number of users to reconsider subscriptions, especially in a market that is getting increasingly choosy about the streaming services consumers subscribe to. However, the addition of new features like multiview and the lower cost of the 4K Plus add-on could help mitigate customer churn.
Moreover, the move to secure exclusive sports content, such as NFL Sunday Ticket, positions YouTube TV as an attractive option for sports fans and may balance out the negative reaction from those upset by the price increase.
With the evolution in the streaming landscape, players like YouTube TV will most likely sustain further price adjustments upward amidst content acquisition challenges and high user expectations. Whether or not this adjustment turns out to be successful is pretty much at the discretion of how well YouTube TV is able to innovate and keep subscribers’ value in the growingly crowded market.
