YouTube, which is owned by tech giant Alphabet (GOOGL), has announced a new round of price increases in the United States, with changes taking effect in the next billing cycle. The standard YouTube Premium plan will now cost $15.99 per month, up from $13.99, while the family plan will increase by $4 to $26.99. This is YouTube’s first price increase in the U.S. in about three years and comes as YouTube Music and Premium services now reach more than 125 million subscribers globally, up from 100 million the year before.
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Other subscription options are also becoming more expensive. YouTube Lite, which offers mostly ad-free viewing but still includes ads on Shorts and music content, will now cost $8.99 per month. In addition, the standalone YouTube Music Premium subscription is increasing by $1 to $11.99 per month. These changes come years after YouTube Premium first launched in 2018, following the earlier YouTube Red service introduced in 2015.
It is worth noting that YouTube’s decision is part of a wider trend throughout the streaming industry. In fact, companies like Spotify (SPOT), Netflix (NFLX), and Disney+ (DIS) have also raised prices recently as they deal with higher content and operating costs. According to YouTube, the increases will help maintain key features such as ad-free viewing, background play, and access to over 300 million songs through YouTube Music.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 25 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $377.90 per share implies 19.2% upside potential.
