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Alphabet Raises Monthly YouTubeTV Price by 30% to $64.99

By Eric Volkman - Jun 30, 2020 at 8:26PM

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But, the company argues, subscribers will be getting more content for that money.

Subscribers of Alphabet's (GOOG 2.36%) (GOOGL 2.39%) YouTube TV will have to reach a little deeper into their pockets if they want to keep watching the streaming video service. Effective on Tuesday, YouTube TV's "base plan" now costs $64.99 per month, up from the previous level of $49.99 and nearly double the $35 the service was priced at its rollout.

Clearly anticipating negative consumer reaction to such a steep increase at an economically challenging time, YouTube wrote in its official blog that "this new price reflects the rising cost of content and we also believe it reflects the complete value of YouTube TV, from our breadth of content to the features that are changing how we watch live TV."

A couple relaxing on a sofa and watching TV.

Image source: Getty Images.

The main reason for the bump is the addition of content from ViacomCBS (PARA 1.51%). Eight of the company's channels will be available through the service, a lineup that includes Comedy Central, BET, MTV, and Nickelodeon. Many popular programs broadcast on these channels, such as The Daily Show With Trevor Noah and SpongeBob SquarePants.

More ViacomCBS channels will be made available through YouTube TV at a later date that has not been specified. Among others, these include NickToons and MTV Classic.

With the new ViacomCBS channels, YouTube TV now has over 85 in total included in its base plan. Additionally, premium channels HBO Max and Cinemax can be added, although these incur additional charges.  

YouTube TV, an extension of the long-established video clip website YouTube, launched with much fanfare in February 2017. Alphabet, one of the most sprawling tech companies on the market, does not break out the financial results of the service.

On Tuesday, the share price rises of both classes of Alphabet stock lagged behind the broader market slightly. 


Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy.

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