YouTube is increasing the monthly cost of its Premium subscription in several markets, including Australia, Germany and Argentina. The price increase comes as YouTube aims to increase revenue from subscribers.
The Google-owned streaming platform began notifying customers in at least 7 countries about the price increases that will take effect on November 1. Existing users have a 3-month grace period before the new rates apply.
Premium benefits now cost more
YouTube Premium offers an ad-free viewing experience on YouTube, along with the ability to download videos, play clips in the background, and unlock exclusive content.
The price increase affects both YouTube Premium and the audio-focused YouTube Music Premium. New subscribers in affected markets will pay the updated rates immediately.
In addition to Australia, Germany and Argentina, other affected countries are Austria, Chile, Poland and Turkey. Premium pricing in India remains unchanged currently.
Efforts to increase paid subscribers
The price increases represent YouTube’s strategy to extract more revenue from its subscription tiers amid rising content production costs.
Parent company Google is pushing users to sign up for Premium by restricting ad blocking on the free version of YouTube. Viewers with ad blockers now face restrictions, pushing them toward paid memberships.
YouTube also sees Premium as a lever to compete with services like Netflix and Spotify, which rely on subscriptions rather than ads. Higher prices give YouTube more purchasing power to create engaging original content.
Advertising revenue is vital to the YouTube ecosystem
YouTube says ad blockers threaten the economic model that allows it to offer free videos and support creators. Ads keep YouTube accessible while generating funds to pay video creators.
The platform maintains that watching ads or paying for Premium are the right ways to access content without undermining creators’ income.
The price increases come after YouTube posted a decline in advertising revenue last quarter amid broader economic woes. Premium subscriptions help provide financial stability during changes in the advertising market.
Users debate the value of the subscription
Reaction to the YouTube Premium price increases has been mixed. Some customers believe the service retains great value, while others argue that the costs now outweigh the benefits.
But with ad blocking now restricted on the free tier, YouTube aims to convert more casual viewers into paying subscribers.
The coming months will reveal whether YouTube’s core advertising business, combined with higher premium pricing, can revitalize its financial performance.
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Categories: Technology
Source: vtt.edu.vn