Recently, online video service (OTT) companies have raised their fees. YouTube is raising the cost of 'YouTube Premiums' for its members. YouTube also raises subscription fees 43% increase to $11.39 USD per month
YouTube announced an increase in YouTube Premium's monthly subscription fee.
The increase is 43%. They announced it on the 8th. The fee will rise from $7.97 USD to $11.39 USD. It has been about three years since the increase in September 2020 ($6.63 USD → $7.97 USD per month).
YouTube Premium is a service you pay for. It lets you watch YouTube videos without ads. The app provides video storage and background playback benefits. It also includes YouTube Music premium features.
The timing of the increased subscription fee varies by membership type. From this day, new members will immediately be charged $11.39 USD. Existing members will remain at the current price until the payment date approaches.
Members who joined YouTube Premium before September 2020 get a three-month grace period.
These members have been using the service for one month. They will have to pay $11.39 usd, a 71.5% increase in price, from April next year.
YouTube said they carefully thought about and chose this price change. They will adjust membership prices as economic factors change.
YouTube seems to be joining the trend of 'stream inflation' in OTT.
Netflix began charging account sharing this month. Users who share accounts with friends or family members must pay an extra fee of $3.81 USD per account. The fee applies to those who live separately. Disney Plus raised its premium plan from $7.55 usd to $10.60 usd per month. TVING also increased subscription fees for new subscribers starting this month.
The OTT industry has kept prices low to grow its market share. Now, it seems they are beginning to make money from users. The analysis reveals that the environment supports increasing subscription fees.
It is easy to justify raising subscription fees based on this analysis. Competitors are all increasing their prices.
YouTube has been raising subscription fees globally this year. YouTube Premium raised its price in July. The price increased in the US from $11.99 to $13.99. In August, the UK also saw a price increase, going from 11.99 pounds to 12.99 pounds. Last month, prices increased in Argentina, Australia, Austria, Chile, Germany, Poland, and Turkey.
