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YouTube TV launched last year, offering a variety of programs from several US networks to subscribers willing to pay $35 a month for the streaming service. The platform has seen considerable growth since then, becoming quite popular among the new generation of media consumers. In a recent announcement, the company revealed that it would be increasing the subscription fee by $5.
In total, the monthly fee for watching the programs available on YouTube TV is now at $40. This should present a considerable source of income for the platform since it now has over 300,000 subscribers based on recent reports, TechCrunch notes. It’s also available in over 100 markets, which gives it plenty of room to grow.
As to why it is increasing the subscription fee, YouTube said last month that it would allow the company to add even more channels to the service. It already features multiple networks that include ABC, CBS, NatGeo, MSNBC, the Disney Channel, and ESPN, among others.
It’s also worth pointing out that the price increase will only apply to customers who will apply for a subscription after the price hike takes place. Those who already have an account or who have gotten one before March 13th will only have to pay the original $35/month fee, Engadget reports.
As YouTube TV grows in popularity, it is coming closer to bumping shoulders with other giants in the video-on-demand industry such as HULU. The market is fast becoming saturated as consumers move away from the traditional format of watching programs via cable and more towards live streaming.
Then again, if it does manage to hold on and keep on going growing its paid subscriber base, YouTube stands a chance of finally making it to the point of substantial profitability. At that point, it won’t have to rely on advertisers as much as it does now.
