YouTube Raises Prices on Music, Premium Individual Plans in the U.S.
Written by djfrosty on July 20, 2023
YouTube raised prices on the individual plans for both YouTube Premium and YouTube Music for new and current U.S.-based subscribers on Thursday (July 20), marking the first time YouTube Premium has increased prices for individual plans in the United States since launching in 2018.
Subscribers to YouTube Premium will pay $13.99 per month, up from $11.99 per month. A YouTube Premium subscription provides ad-free and background viewing of videos on YouTube bundled with a YouTube Music account. Standalone YouTube Music subscribers will pay $11.99 per month, a $1 increase from $10.99 per month. Subscribers who signed up at least five years ago, including people who originally signed up for YouTube Music’s predecessor, Google Play, will receive an additional three months at the current price before incurring the price hike.
The Case For — and Against — Higher Streaming Subscription Prices
YouTube says the price increase will allow it to continue providing a great service and features. “We believe this new price reflects the value of YouTube Premium which allows subscribers to enjoy ad-free YouTube with background and offline play and uninterrupted access to over 100 million songs with the YouTube Music app,” a YouTube spokesperson said in a statement to Billboard.
Thursday’s price increase brings the individual plans in line with family plans that provide access to multiple people per account. In 2022, YouTube left the individual prices unchanged when it raised the price for a YouTube Premium family plan from $17.99 to $22.99 per month. The move also brings YouTube’s individual plan prices in line with two of its main competitors. Individual plans for Apple Music increased from $9.99 to $10.99 per month in October 2022, while Amazon Music individual subscriptions increased $1 per month, from $9.99 to $10.99, in February.
Spotify has not yet increased individual subscription prices in the United States but is widely expected to do so this year. The company raised the price of its family plan accounts from $14.99 to $15.99 per month for U.S. subscribers back in 2021. As for individual plans, “I think we are ready to raise prices, I think we have the ability to do that, but it really comes down to those negotiations” with major music industry stakeholders, CEO Daniel Ek said on the April 25 conference call discussing Spotify’s first quarter earnings.