YouTube TV subscribers are in for a price hike once again, as the company announces an $8 increase to its monthly subscription fee. From $64.99, the price will jump to $72.99, which is getting closer to the cost of traditional cable TV providers. The price increase will apply to existing subscribers starting April 18th, while new subscribers will have to pay the new rate from today.
The company claims that the cost of providing content and investment in service quality is behind the price hike. However, YouTube TV is trying to soften the blow by reducing the cost of its 4K add-on from $19.99 to $9.99 per month. This move will save current subscribers $2 a month, while new subscribers will have the opportunity to add 4K at a more affordable rate. However, it is worth noting that the 4K content is limited to a few channels.
This price increase is not the first for YouTube TV subscribers. Since its launch in 2017 for $35 per month, the cost has more than doubled, with the last price increase in 2020 from $50 to $64.99 per month. The company continues to add content to its platform, with the recent acquisition of NFL Sunday Ticket reportedly costing $2 billion per year.
While YouTube TV has not added any new channels, the cost of securing content has undoubtedly contributed to the price increase. The company added channels from Discovery in 2019 and ViacomCBS in 2020, including popular networks such as HGTV, Food Network, Nickelodeon, MTV, and Comedy Central.
The latest price hike brings YouTube TV’s monthly subscription cost above that of Hulu’s ad-supported Live TV tier at $70 per month, which also includes access to Disney and ESPN Plus with ads. It could make it challenging for YouTube TV to compete with Hulu’s offering, especially for customers who are cost-conscious.