Google’s two-year old YouTube TV streaming service has raised its price to $49.99 from $40.00 a month, its second price increase. The move comes as YouTube TV announced it had signed a deal to carry a number of Discovery’s channels, including Discovery Channel, HGTV and Food Networks.
YouTube isn’t the only one of these streaming cable services to have raised prices since launch. Like its competitors, YouTube is realizing how difficult it is to price cheaply while also covering the costs of licensing cable channels. And while YouTube TV has seen growth—its subscriber count reached around 1 million by the end of last year, according to some estimates—rivals like Hulu are doing better.
By raising prices, the streaming services may scare away customers. The attraction of these services, after all, is that they offer a cable-like TV service for a much lower price. At least, that was the original idea.