YouTube TV, Alphabet’s (GOOGL) TV streaming service, is raising its monthly subscription fee by 14% to $82.99. This price increase, effective January 13, 2025, is the latest in a series of hikes for YouTube TV. Since its launch in 2017, the streaming platform’s monthly fee increased by approximately 43% in 2019 and 46% in 2023.
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YouTube TV provides live streaming of local TV networks and access to networks such as ESPN, CNN, and TNT. Earlier this year, the company reported a 60% increase in its subscriber base, growing from 5 million users in 2022 to over 8 million as of January 2024.
The company has highlighted increasing content costs and the need to invest in new features and services as the main drivers behind the price hike.
YouTube TV Follows a Broader Industry Trend
This price hike is consistent with a broader trend in the streaming industry, where major providers like Walt Disney (DIS) and Paramount Global (PARA) have also raised their prices and introduced ad-supported tiers to offset increasing costs.
YouTube TV acknowledged that the price hike could cause some subscribers to cancel their subscriptions, but the company is still focused on offering a great viewing experience and adding new features.
Is GOOGL Stock a Buy, Sell, or Hold?
Turning to Wall Street, GOOGL has a Strong Buy consensus rating based on 27 Buys and six Holds assigned in the last three months. At $209.21, the average Alphabet price target implies an 8.99% upside potential. Shares of the company have gained 37.92% year-to-date.
