YouTube TV price hike
YouTube TV raised its base subscription rate by $10 from $73/month to $83/month, a substantial increase. Reports surfaced that the company is willing to offer some subscribers who cancel a six-month price lock at the current $73/month rate. They are clearly worried about churn, which could be inevitable in the long run. Comparable alternatives are not really cheaper or have a more limited channel mix. Hulu + Live TV offers a tier for about the same cost, but they also throw in ad-supported Hulu On-Demand, Disney+ and ESPN+ content. Sling TV starts at $40/month but offers fewer channels. Notably, Fubo costs $80/month and DirecTV Stream starts at $87/month.
The Circana Take:
- Virtual MVPDs launched as an affordable alternative to cable. However, the reality of programming costs crept up. It’s now just a matter of how you want to get your programming as the cost benefit of a virtual MVPD is gone.
Netflix teams up with FIFA Women’s World Cup
Netflix won the streaming rights to the 2027 and 2031 FIFA Women’s World Cup, making it the first time the event will be streamed. Netflix will also offer additional programming and shows complementing the matches and documentaries linked to the tournament. Netflix has been heavily investing in sports recently with the airing of NFL games on Christmas Day, the Jake Paul/Mike Tyson fight, and WWE Raw debuting on Jan 6th. Notably, women’s sports have been growing in popularity with basketball, soccer, and tennis, so the timing seems right for the FIFA deal.
The Circana Take:
- Sports rights continue to be a lucrative investment and Netflix is positioning itself as a source of sports content while giving current subscribers additional content to help justify the recent price hike.
- This move reflects a growing trend in the industry, with streaming companies using live sports to draw and retain subscribers; a strategy extremely similar to that employed by cable networks for decades.
Apple TV+ free promotion
Apple is offering Apple TV+ free for three days over the first weekend of the new year. Those with an Apple account will have access to the full Apple TV+ catalog which includes “Severance,” “Ted Lasso” and “The Morning Show.” Apple is hoping this free promo moves people to sign up for the service at the regular price of $9.99/month or $99.99/year.
The Circana Take:
- Apple is the first streaming service to ring in the new year with a free promo to bolster subscriptions. But it remains to be seen if the service has enough programming to sustain long term engagement.