In this article, we’ll delve into the reasons behind YouTube TV’s latest price increase and how it compares to other streaming services and cable providers.
Key takeaways:
YouTube TV has once again raised its subscription fee, bringing it closer to traditional cable pricing. The platform’s base subscription cost has been increased from $64.99 to $72.99 per month, an $8 hike.
This change applies to new subscribers immediately, while existing subscribers will see the increase starting April 18th.
The company justifies the price bump by citing higher content expenses and a commitment to improving service quality.
As a concession, YouTube TV has also reduced the 4K add-on cost from $19.99 to $9.99 per month.
Current 4K subscribers will effectively save $2 after the pricing adjustments. However, it’s worth noting that 4K streaming is available only on a limited number of channels.
Since its launch in 2017, YouTube TV’s price has more than doubled. Initially, the service was priced at $35 per month, available only in select areas.
In 2019, the fee increased to $50 per month, followed by another hike to $64.99 in 2020.
These price changes were typically accompanied by the addition of new channels, such as Discovery networks in 2019 and ViacomCBS channels in 2020.
While no new channels have been announced alongside the current price increase, YouTube TV has been actively investing in content.
The company secured rights to NFL Sunday Ticket last year, a deal estimated to cost $2 billion annually.
However, YouTube TV denies that this specific agreement led to the price hike, attributing the change to the “broader rise of content costs.”
The latest price increase further blurs the distinction between streaming services like YouTube TV and traditional cable providers.
With the new price, YouTube TV now costs more than Hulu’s ad-supported Live TV plan, which is priced at $70 per month and includes access to Disney and ESPN Plus with ads.
This could make YouTube TV a harder sell for potential subscribers, unless they’re particularly interested in NFL Sunday Ticket.
As YouTube TV’s subscription costs continue to rise, the streaming service’s competitive advantage over traditional cable providers may be diminishing.
The platform’s increased focus on adding content and improving quality could ultimately lead to an industry resembling the cable market it once sought to disrupt.
