YouTube Music has announced a price increase for its premium subscription service in several regions worldwide, including parts of Europe, the Middle East, South America, and Southeast Asia. The changes, set to take effect on November 4th, have ignited a wave of discontent among users and prompted discussions about the economic implications of the move.
Social media platforms have been abuzz with users expressing their frustration over the price hikes, with some reporting increases of up to 40 percent for individual and family plans. In Norway, for instance, the cost of an individual subscription is set to jump by 42 percent, while the Czech Republic will see a 44.6 percent increase in the family plan price.
YouTube has defended the decision, stating that the price adjustments are necessary to “continue to improve Premium and support the creators and artists” on the platform. However, many users argue that the service’s features, such as ad-free viewing and background playback, do not justify the steep price increases. Some have even threatened to cancel their subscriptions, while others have criticised the company for continuing to include ads in its “Premium Lite” plan.
This latest move follows a pattern of price increases for YouTube Premium. According to Music Business Worldwide, in the US, the company quietly raised the price of its individual plan by $2 to $13.99 per month last year, and the family plan by $5 to $22.99 almost two years ago.
From an economic perspective, experts say YouTube’s price hike can be seen as an attempt to maximise revenue and capture a larger share of consumer surplus, particularly in markets with relatively inelastic demand for its services. However, this strategy carries risks, as it could alienate price-sensitive users and drive them towards going back to free use with ads or competing platforms like Spotify, Apple Music, and Amazon Music.
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X user Secc said, “Looks like @YouTube is increasing premium prices by 15% for no reason… Guess it’s time to cancel and go back to just blocking the ads, there is no reason besides greed to up it that much.”
YouTube X users replied to him saying, “totally understand where you’re coming from. membership prices are updated occasionally to keep up w/ market changes.”
The price increase also raises questions about market competition and YouTube’s market power. As a dominant player in the online video and music streaming industry, YouTube enjoys considerable leverage in setting prices. However, the presence of strong competitors could limit its ability to raise prices without facing significant pushback from consumers.
Another X user Sami said, “30% hike? I better get used to the ads, Spotify or Apple Music seems pretty good right now.”
The move also sheds light on YouTube’s broader strategy for its music streaming platform, as the company continues to experiment with different pricing tiers and features to cater to a diverse user base. With YouTube Music surpassing 100 million paid subscribers earlier this year, the company is clearly aiming to solidify its position in the competitive streaming market.
The ultimate impact of the price increases on YouTube’s user base, revenue, and market share remains to be seen. While some users may be willing to absorb the higher costs, others may seek more affordable alternatives.
