Is it time for YouTube TV to offer more flexible channel packages?

Ben Schoon | Dec 15 2024 - 9:00 am PT

YouTube TV has seen a number of price hikes over the years as the service has grown, and as it now serves millions of viewers, it was inevitable that another rise would be coming. That’s finally arrived this week, and it begs the question of whether or not YouTube TV will ever offer cheaper streaming packages.

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Back when it launched in 2017, YouTube TV delivered a host of channels for streaming which were available for just $35 per month. By the following year, the price went up to $40, and then to $49.99 in 2019. In 2020, the biggest price hike to date landed, bringing the price up to $64.99. That price stuck around for almost three years, with the next raise coming in early 2023 to $72.99 per month.

Now, YouTube TV plans to bring the price up to $82.99 per month starting in January 2025.

This was inevitable, really, as the price of everything goes up, including the various channels that YouTube TV hosts and, in turn, the cost of the service itself. Of course, this comes as YouTube TV’s library has continued to suffer losses. Most notable is the loss of various sports channels including regional sports channels, MLB Network, and others in recent years. It’s been ages since those were removed, and there’s no sign they’re returning. YouTube TV has also been adding fewer and fewer channels in recent years compared to before.

That means that, for many YouTube TV subscribers, the channels they once were mainly interested in are gone. For others, the channels they do subscribe in order to get make up a very tiny portion of the full library, effectively making the new, higher pricing even less worth it for many.

Since the beginning of YouTube TV price hikes, subscribers have been asking for more options for flexible packages.

This isn’t some new idea. Traditional cable heavily relies on a variety of different packages, though base pricing is usually in the same ballpark as YouTube TV is now (though often with more channels to offer). In the streaming world, though, Sling TV sets a great example.

Sling’s lineup consists of multiple different packages of channels which can be purchased individually of one another. The “Orange” package includes 35 channels focused on sports and family channels, while “Blue” includes 43 other channels including news and general entertainment. Each one is $40 per month on its own, or you can combine the two for $55 in total. Like YouTube TV, there are other add-ons beyond that, and additional packages for international, and Latino channels.

YouTube TV could, in theory, do something similar. If Sling can pull off these deals, YouTube TV with its drastically higher subscriber count could probably get it done as well. The key to making this happening is probably the higher price of the individual plans versus the combined package as it helps make up for the lack of spreading out the cost.

The technical structure for this is somewhat in place already, as YouTube TV has been offering add-on channels and packages for a while. It likely requires a host of new negotiations with content providers, but it really seems like it’s time. Especially as many are now subscribing to YouTube TV just for NFL Sunday Ticket, the rising cost of the base package is making the service inaccessible to many.

Will this ever happen? Personally, I hope so, but I’m not confident. Despite the continually rising cost of the service, people keep signing up because, at the end of the day, YouTube TV is offering the best overall product. $83/month might end up be the breaking point for many, but I suspect the idea of cheaper, more flexible pricing packages won’t be taken seriously until people stop paying up for the existing model.

What do you think?

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