The video streaming platform is getting more expensive in the United States. YouTube, owned by Alphabet, has hiked prices on its monthly and annual premium plans for the first time since the subscription service was launched in 2018. The monthly plan will now cost $13.99 in the United States, up $2 from before. The price for its annual plan was hiked by $20 to $139.99, according to the company’s website on Thursday. The price increases are only in the United States, but YouTube could eventually make them standard worldwide.
The subscription tier removes ads on YouTube videos and offers other features, including audio-only playback and downloads for offline viewing. It also supports creators and provides access to a music streaming app. YouTube says the price increase will continue “delivering great service and features, like ad-free YouTube and uninterrupted access to over 100 million songs on the YouTube Music app, while also supporting creators and their families.”
The company has tried to push more people toward its premium services by cracking down on ad blockers and running an experiment that put 4K streaming behind a paywall for a short time. It hasn’t been a big success, though, as ad revenue has declined.
YouTube isn’t the only streaming company to raise its prices lately. Spotify also recently raised its rates and is now charging more per month for its basic plan. As the industry matures, it’ll be necessary to keep raising prices to stay profitable.
The price hikes for YouTube Premium won’t affect existing subscribers until their next billing cycle. Those on month-to-month plans will receive an email explaining the change and be given three months of service at their old rate before the new charges kick in. YouTube also notes that its premium services will be unified, meaning those on the current Music and Premium plans can expect to pay the same price starting in April 2023.
Subscribers who signed up five years ago, when the service was known as Red and then YouTube Premium, can keep paying $10 monthly for both services until April 2023. That’s a nice perk, but it’s still bittersweet, considering they were grandfathered in with a discounted rate for nearly six years.
Those who haven’t yet signed up for either YouTube Premium or Music can get a one-month free trial before the price increase occurs. YouTube says that it will provide at least 30 days’ notice before any future price hikes take effect, so users should be able to adjust their budgets accordingly before they kick in. The changes won’t affect YouTube TV, which Google raised the price of in March to $73 a month. Subscribers can give feedback on the latest price increases by heading to this link. The company hasn’t announced any upcoming price hikes for its other streaming services in the United States yet.
