YouTube Premium Price Hike May Cost More Than Subscribers

At a glance:

• 42% of survey respondents said they would swallow the price increase.
• 18% of respondents said they planned to cancel.
• 30.6% of respondents said they weren’t subscribers, but among current subscribers, 40% are changing or canceling plans.

What happened

Google recently increased the price of YouTube Premium in the US, raising the individual plan from $13.99 to $15.99 and the family tier from $22.99 to $26.99. This price increase was part of a broader trend of raising subscription costs across various platforms. The last price hike in the US was in July 2023, but this increase may not have come as a huge shock to users. However, the survey conducted by Android Authority sought to understand the potential impact of this hike on subscribers.

Why it matters

The survey results suggest that the price increase may have a significant impact on YouTube Premium’s subscriber base. Among current subscribers, 60.7% said they would stick with their plan, while 26.4% said they would cancel. Additionally, 12.8% said they would switch to a different plan. When combining the percentages of those who would cancel and switch, almost 40% of current subscribers are considering changing or canceling their plans as a result of the price increase. This is a concerning figure for YouTube, as the increased revenue from the $2 bump to the individual plan is only 14% more. It suggests that the company may need to reconsider its pricing strategy to retain its subscriber base.

What to watch next

Google’s decision to increase the price of YouTube Premium may have been based on extensive market research, which is likely much more complex than the back-of-a-notebook example provided by the survey. It is possible that Google will continue to monitor the impact of the price increase on its subscriber base and adjust its pricing strategy accordingly. Additionally, other platforms may follow suit in raising their subscription costs, which could have a broader impact on the streaming industry as a whole.