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Chronicles

The story behind the story

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YouTube tells customers that the monthly price for YouTube TV's base plan will jump from $73 to $83 in January 2025, after raising it from $65 to $73 in 2023

YouTube TV logo  —  Streaming services became a popular alternative to cable and satellite television because they were available …

Awful Announcing Matt Yoder

Context & Ripple Effects

YouTube TV launched at $35 with broadcast and cable channels, then moved through successive price tiers as its channel lineup expanded. The latest increase follows its 2023 move to $72.99 a month, extending a long-running repricing cycle rather than marking a one-off adjustment.

The relevant backdrop is the unresolved economics of streaming-TV bundles: prior coverage found virtual TV providers could not readily escape the traditional bundle-negotiation model. That makes YouTube TV a useful test of how far a cable alternative can raise recurring revenue while retaining customers.

First-order effects

  • Base-plan subscribers face a $10 higher monthly bill beginning in January 2025, while YouTube TV raises revenue per subscriber if retention holds.
  • YouTube TV’s price premium over its own earlier tiers becomes more pronounced, sharpening the value calculation for households that use it chiefly for live channels.

Second-order effects

  • Rival live-TV streaming services face greater room to raise prices, but also a clearer opening to compete on lower-cost packages or narrower channel bundles.
  • The increase reinforces distributors’ incentive to press for better programming economics; the earlier 2020 price increase tied to rising content costs shows those costs have repeatedly flowed through to subscribers.

Third-order effects

  • If repeated increases persist across the category, streaming TV will continue to converge economically with cable: a bundled live-TV product delivered over the internet, rather than a structurally cheaper replacement.
  • The key uncertainty is demand elasticity: sustained subscriber retention would validate higher recurring pricing, while meaningful churn would increase pressure for smaller, more flexible bundles.

The trend: Live-TV streaming is shifting from low-price cable alternative to mature bundled distribution business, with programming costs increasingly passed through in subscription prices.

Discussion

  • @jimbo831 @jimbo831 on bluesky
    Cancelled it the last time it went up.  I don't know why anyone would pay $83 a month for this.  You can get cable cheaper from your cable company now.
  • @bdsams.com Brad Sams on bluesky
    Cable tv is back [embedded post]
  • @mgsiegler.com M.G. Siegler on bluesky
    It's almost like they want to engender the same feeling that cable once did...  [embedded post]
  • @sarcosis.org @sarcosis.org on bluesky
    One step closer to being cable again.  [embedded post]
  • @chriswelch Chris Welch on threads
    Brutal.  Just brutal.  And you can't even really argue that sports are the reason, seeing as YouTube TV has dropped a large number of regional sports networks in recent years.  (4K still costs extra, too...)
  • @maxwelltani Max Tani on x
    Cable is dying in part because people decided to pay for cable on the internet
  • @tvanswerman @tvanswerman on x
    Got an offer of a $65 credit from Fubo so...just switched from YouTube TV to Fubo.
  • @joepompliano Joe Pompliano on x
    YouTube TV is increasing its price to $83 a month starting in January 2025. That means YouTube TV has now doubled in price over the last five years, from $40 to $83 per month, while also removing regional sports networks and other channels like MLB network. That's crazy. [image]
  • @mikejanela Mike Janela on x
    Damn...feels like @YouTubeTV is raising prices daily $10 jump! This might be my last straw✌️🏼 [image]
  • @justafamilyman_ U. P. Sr on x
    YouTube TV just increased their price again. All that cord cutting to go to these apps only for them to get back to the price of cable. 😂
  • @tvgrimreaper @tvgrimreaper on x
    Today's reminder: vMVPDs (internet channel bundles) like YouTubeTV, Hulu Live, Fubo, Sling, etc. are terrible negative gross margin businesses. [image]
  • @jd60pe5 Jordan Decker on x
    Wow. @YouTubeTV raising its prices by $10/month again is...something. Cable: [image]
  • @austin_rief Austin Rief on x
    YouTube TV is now $82.99/month. $1,000/year for live TV feels like a ripoff. [image]
  • @rheidrick24 Rick Heidrick on x
    Remember when @YouTubeTV was like $60~ before taxes? Same. Then it went to $72.99? Same. Now it's jumping up to $82.99 in January. Better start giving us some free 4K channels or something.
  • @gimmetheludt @gimmetheludt on x
    @JoePompliano @YouTubeTV is criminal. The least they could do is allow custom quad-box of any 4 channels you want. Remember the good ole days when the purpose of YouTube TV was to just watch sports for cheaper than cable?
  • @bigseanq_ @bigseanq_ on x
    My biggest gripe with YouTube TV is that you should automatically get YouTube Premium with it. It's insane that they don't even offer any sort of bundle for those services
  • @tvgrimreaper @tvgrimreaper on x
    YouTube TV: The price increases will continue until morale improves. [image]