YouTube TV has seen its share of price increases since its launch a few years ago, but according to a Google official, we shouldn’t expect our bills to go up anytime soon, not in the “short term”, at least.
What is YouTube TV’s pricing strategy?
YouTube TV started out as a cord cutter’s dream. It was only $ 35 when it first hit the market in 2018 with a huge selection of channels. However, the price has since jumped to $ 64.99, approaching double the introductory price.
In a recent interview with The Verge Set-top Box Podcast, Neal Mohan, chief product officer of YouTube, spoke of the price increases, citing “the economic realities of how content pricing works and the like.”
The point is that streaming TV channels comes at a significant cost for Google. The company is forced to pass these costs on to consumers as they increase. Google’s goal with YouTube TV is to make money, and if the channels increase the cost for Google to broadcast them, then the price of the service reflects that.
However, in the same interview, Mohan calmed the minds of current subscribers, saying “there won’t be any other price hikes or anything in the short term.”
What does “short term” mean in this case? It’s hard to tell, and Mohan hasn’t developed. We would assume that Mohan means at least the rest of 2021 when talking about “short term,” but that’s hard to say for sure. We’ll just have to wait and see what the company does, but for now its price is in line with Hulu + Live TV, which also costs $ 64.99 per month.
However, it looks like YouTube TV is set to suffer a price hike. It jumped to its current price of $ 64.99 just over a year ago in June 2020. Considering the rushed pace of service early on, a full year seems like a long time. Still, maybe Google has finally found the price that works for both its profitability and the comfort level of its subscribers.
Cut the rope
We are quickly approaching the point where Internet cable plans cost almost as much as traditional cable. Of course, we’re not there yet, but if the current price is too high for you, it’s pretty easy to cancel YouTube TV and try something else.