YouTube Premium’s latest price hike may cost it more than a few subscribers, survey suggests

Source: Android Authority

Joe Maring / Android Authority

YouTube Premium is one of those subscriptions many people reluctantly pay for because, once you get used to it, the idea of going back is tough to take. No ads, background playback, downloads, YouTube Music — it’s easy to see why it feels essential, even if you resent the monthly deduction on your bank statement. That’s probably why Google felt able to enact the latest YouTube Premium price increase in the US without losing too many subscribers, but we wondered what the reaction would be.

Price Increase Details

The hike raised the individual plan from $13.99 to $15.99 and the family tier from $22.99 to $26.99. The previous US increase occurred in July 2023, so the change was not entirely unexpected, but it still made Premium harder to justify for some users. The poll was first embedded in our report on the price hike and later added to our coverage of the Verizon perk follow‑up (which also became more expensive) and the Google AI Pro offer, a potential way to soften the blow.

Poll Results

• 42 % of respondents said they would swallow the price increase.
• 18 % planned to cancel.
• 9 % would switch plans because of the hike.
• 30.6 % indicated they were not subscribers.

When we look only at current Premium subscribers (excluding the 30.6 % non‑subscribers):

• 60.7 % would stay with their plan.
• 26.4 % would cancel.
• 12.8 % would switch to a different plan.

Combined, almost 40 % of existing Premium users indicated they might change or cancel their subscription as a result of the price increase.

Analysis

The poll suggests a notable portion of current subscribers are reconsidering their commitment, even though the overall revenue bump from a $2 increase to the individual plan is only about 14 %. However, it’s important to note that the poll was conducted among readers of articles about the price hike, a group likely more inclined to feel aggrieved. Consequently, the sample may not represent the broader YouTube Premium community.

YouTube, as a half‑trillion‑dollar platform, doesn’t make pricing decisions lightly. Internal analysts are likely running complex models and extensive market research that go far beyond this simple back‑of‑the‑envelope calculation. The $2 increase may have been chosen because the majority of users are expected to stay, even if some initially consider canceling. Over time, many may settle back into the service, especially given the difficulty of returning to unskippable ads.