As far as streaming rate hikes go, YouTube TV's announced $15 hike this week was one of the biggest, a 30% jump to $65 from what was already a hefty $50 monthly.
By comparison, streamer Netflix, in 2019, upped rates by just $2 for its standard plan, from $10.99 to $12.99. Also last year, rival Hulu added $10 to the price of its cable TV alternative service, to $55 from $45.
YouTube TV is now the most expensive of the streaming cable TV alternatives, a way to watch cable networks like CNN, ESPN and Freeform at rates that had been marketed as way lower than cable TV. When YouTube TV launched in 2017, the monthly rate was $35.
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Consumers naturally are up in arms, wondering how the Google-owned company could choose this time, of all times, to make the announcement.
"Another price increase, adding channels that no one asked for and no one wants, increasing prices during a pandemic while millions are out of work," said Brian Barrington on Twitter. "What a horrible way to do business."
Many consumers have wondered what to do, where to go in response. YouTube saw that coming, in a company blog post, and even added a link to cancel or pause the service.
For its part, YouTube says it had to jack up the rates due to rising programming costs, and noted that it added several new channels to the mix, including MTV, Comedy Central and Nickelodeon. But as consumers like Barrington noted, many would prefer paying lower rates than getting these channels.
What does YouTube say to those consumers who want a la carte, and more choice over their bundles?
"It’s unfortunately not fully up to us to offer certain channels a la carte – in order to get new channels, we negotiate with content providers (aka “networks”) to license their content," said YouTube in a statement. "At this point, most networks require that we offer their full portfolio of channels to our members. We know having options is important to you, so we’re working to add more flexible options in the future."
Phillip Swann, who blogs about TV as the "TV Answer Man" and on Twitter as @swanniontv thinks there's a slight chance YouTube will come through on offering lower priced packages. "They might," he says.
The problem with streaming is the same woe that ails cable. The big programming companies control the channels, costs keep going up, and it all gets passed on to consumers.
"If you want any channels at all, in almost every case, they are part of a bundle," he says.
Just like cable rates keep going up, streaming will continue to climb as well.
Sling, which has the most affordable full-service streaming packages available starting at $30 a month, assured consumers Wednesday that it won't raise prices on them through at least August 1, 2021. (But hurry, the offer expires on August 1, 2020.)
"We believe now is not the time to make our customers choose between staying informed and entertained, and putting dinner on the table," Sling said in a company blog post.
The service, which has fewer channels than YouTube TV, Hulu with Live TV and AT&T Now, is offering a free 14-day trial through July 6. Unlike the big 3, Sling only has broadcast TV available from Fox and NBC, not ABC or CBS.
It recommends that consumers pick up an antenna to watch those channels. And if they need a DVR to pick them up, it sells a device called AirTV for $99.99.
Cloud DVR is an additional $5 monthly with Sling.
Meanwhile, Fubo, which specializes in sports, also upped its monthly fee to $65 Wednesday, despite the COVID-19 crisis eliminating most live sports from being played.
AT&T Now's pricing is $55 monthly for 45 channels. Hulu with Live TV has the same price, but nearly 100 channels. (Hulu also has a bundle, with Live TV, Disney + and ESPN + for $61.99, less than the YouTube TV new charge.)
While many analysts have said that the cutting the cord movement was going to catch up to cable TV eventually, there's still a wide gap.
We shopped for entry-level packages on cable TV Wednesday with Spectrum and Comcast, and while both started in the $65 range, they ended over $125 once the equipment rentals (DVR, modem) and service to two TVs was added.
(A local Los Angeles provider, Frontier, told us it couldn't even quote us video pricing, as it's not offering new service during the COVID crisis.)
YouTube TV, as awful as the price increase sounds, still is half the price of the entry-level cable offering. And unlike Frontier, since no equipment is needed, just a streaming player or Smart TV to pull in the signal off the app, viewers can get their shows instantly.
Follow USA TODAY's Jefferson Graham (@jeffersongraham) on Twitter.
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July 02, 2020 at 10:56PM
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Cutting the cord: What now, after YouTube TV's price increase? - USA TODAY
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