Streaming service costs may decrease in the near future.
A major player might be rethinking its pricey strategy.
YouTube TV provides a generally seamless live television experience, but its pricing has increased considerably. Initially offered at $35 monthly in 2017, the base plan now costs $83. A recent report suggests that the platform may introduce less expensive, smaller channel bundles as early as next year.
Currently, the service has a single plan with over 100 channels. Reports indicate a potential shift towards genre-specific options, with a sports package as the most anticipated. This would allow users to access channels like NBC Sports, Fox Sports, and ESPN without paying for unwanted reality TV content, offering greater flexibility.
The streaming market is resembling traditional cable packages. Sling TV has long offered separate "Orange" and "Blue" packages, letting users prioritize sports and family content (Orange) or news and entertainment (Blue) at about half the cost of YouTube TV. Google's reluctance to unbundle has pushed budget-conscious users to seek alternatives.
This potential change suggests the $80+ price range is unsustainable, as consumers are unwilling to pay for content they don't view. If implemented, this strategy would compete with both cable and more affordable streaming services. This evolution is crucial for maintaining growth in a market facing subscription fatigue.
While YouTube TV's interface and unlimited DVR are appealing, paying over $80 for limited sports content feels excessive. A sports-focused tier could attract previous subscribers.
However, network contracts often force providers to include unpopular channels. It remains to be seen how Google will handle these agreements. A stripped-down package would be desirable, but official pricing is needed. Until then, this report should be regarded with caution.