Cord-Cutters Face Another Price Hike as YouTube TV Raises Fees
Rising Programming Costs
Remember all that money you were going to save by canceling your cable TV subscription? Cord-cutters are again dealing with the reality of rising programming costs after YouTube TV told subscribers Thursday that their monthly fee will go up by 14% to $82.99 starting in January.
Customer Reaction
Needless to say, many dissatisfied customers took to social media after learning of another price increase to YouTube TV, the streaming package marketed as a budget-friendly alternative to the traditional multichannel services.
Comparing Costs
“I’m so glad that I made the right financial decision in 2018 and ditched my $89/mo cable package so I can now pay $83/mo for YouTube TV, $23/mo for Netflix, $16/mo for Disney+, $13/mo for Paramount, $15/mo for Prime, $10/mo for AppleTV, and $21/mo for HBO,” wrote Chris Bakke on X.
Impact on Subscribers
Many of the 8 million subscribers to YouTube TV depend on the service as a cost-efficient way to get live broadcast and cable channels to supplement their favorite streaming services such as Netflix and Amazon’s Prime Video. YouTube TV is especially popular among sports fans who have abandoned cable but still want access to live sports.
Timing of the Price Increase
The price increase takes effect just as the NFL season heads into the playoffs, which attract some of the largest TV audiences of the year ahead of the biggest TV event of all, the Super Bowl, on Feb. 9.
History of Price Increases
After YouTube TV posted information about the increase on X, readers added a Community Note to point out the price has risen 137% since the service was launched in 2017. The last price hike was in March 2023.
Company Response
Even YouTube TV acknowledged that the rising costs may be too much for some of its members to absorb. The company posted a link on X to where consumers could pause or cancel their subscriptions.
Consumer Backlash
Enraged consumers also flooded the YouTube TV fan group page on Facebook with complaints to the point where some members asked the administrator to cut off comments.
Rationale Behind the Price Increase
“We are subsidizing their bad decision to subsidize NFL SUNDAY TICKET,” wrote group member Alan Hulings. (YouTube parent Google agreed to pay the NFL $2.5 billion a year to get the package of out-of-market Sunday games in 2023. The figure is $1 billion above what previous carrier DirecTV paid. YouTube TV offers the Sunday Ticket package to YouTube subscribers for an additional $379 a year.)
Discount Offer
The fan page posted a video showing how consumers who attempt to cancel the service are being offered a discount to stick around, delaying the $10 increase for six months.
Industry Trend
YouTube is not alone in raising subscription prices. Walt Disney Co. increased the rates for its streaming services Disney+, Hulu and ESPN+. Disney’s Hulu + Live TV bundle, which includes live channels and the three Disney streaming services, also is priced at $82.99 a month.
Conclusion
The media companies came under pressure from Wall Street to raise prices in order to increase profits. Some services were launched at low prices to draw larger numbers of subscribers quickly, but those fees proved unsustainable.
FAQs
Q: Why is YouTube TV raising its prices?
A: YouTube TV is raising its prices due to rising programming costs, including the cost of NFL Sunday Ticket.
Q: How much is the price increase?
A: The price increase is 14%, from $72.99 to $82.99 per month.
Q: When does the price increase take effect?
A: The price increase takes effect in January.
Q: Can I pause or cancel my subscription?
A: Yes, YouTube TV is offering a link to pause or cancel your subscription.
Q: Why are other streaming services also raising their prices?
A: Other streaming services are also raising their prices due to pressure from Wall Street to increase profits.
