YouTube TV is raising its monthly subscription cost by $10, bringing the base package price to $82.99. This increase was announced on X, formerly known as Twitter, with YouTube citing rising content costs as the reason behind the adjustment. You can see my full analysis in my latest video.
The service operates on a model similar to traditional cable, where the YouTube pays networks a per-subscriber fee to carry their channels. These costs are then passed on to subscribers, who often pay for channels they don’t watch. This pricing model, unchanged from its cable roots, appears increasingly unsustainable as consumers look for more tailored and affordable options.
Since its launch in 2017, YouTube TV’s pricing has jumped from an initial $35 per month to its current level. While the platform initially offered a cost-effective alternative to cable, the steady increases have put pricing more in line with traditional offerings. Content providers have capitalized on the platform’s growing subscriber base, pushing for higher rates that have driven up costs year after year.
And it’s only going to get worse.. Local broadcast networks, through initiatives like the Coalition for Local News, are lobbying for the right to negotiate directly with streaming services like YouTube TV similar to how they negotiate with cable companies. Currently, local affiliates have to take whatever deal that’s negotitated for them by ABC, NBC, etc. If the local broadcasters are successful, this could further drive higher prices and lead to localized channel blackouts when agreements fail.
For those unwilling to accept these price hikes, alternatives exist. One option is to use an over-the-air antenna paired with a gateway device like the HDHomeRun or Tablo, allowing viewers to stream local channels without a subscription. Though broadcasters are exploring encryption of these signals, the method remains viable for now and eliminates recurring costs after purchasing the hardware. Gateway devices typically retail for around $150-200.
“Skinny bundles” offered by platforms like Sling, Philo, and Frndly present another option. These services offer smaller channel selections tailored to specific viewer interests at significantly lower prices. For example, Sling’s “Orange” and “Blue” packages start at $45, while Philo’s $28 plan includes popular channels like AMC and the History Channel. Frndly TV, at just $10 per month, caters to viewers focused on channels like Hallmark, A&E, Lifetime and the history channel.
Additionally, free streaming platforms like Pluto TV, Plex, and even YouTube itself provide access to a wide variety of content at no cost. These ad-supported services feature everything from local news to specialty channels, offering a no-cost solution for those willing to explore.
The continual price hikes from YouTube TV and similar services highlight the limitations of applying cable-era pricing structures to streaming. Oddly their prices are going up as viewer interest and engagement continues to decline. It’s only a matter of time before this tired business model completely collapses.