Tearing Down YouTube Premium’s Pricing Strategy [Video]

Gone on a YouTube binge lately? Fallen down the rabbit-hole of celebrity interviews, cat compilations, or music videos from your favorite band? Did you know you can pay for all that?

In this episode of Pricing Page Teardown, we dig into the components of YouTube Premium, the platform’s attempt to monetize its massive user base. Though the product is fairly new, they’ve already got a handle on their core customer and their willingness to pay. However, we also see key areas where the company could localize, segment better, and increase its margins.

Chasing younger consumers

Like many consumer subscription products, YouTube is keeping it simple with pricing—$11.99/month gets you everything:

Everything here includes:

1. Ad-free videos and music.
2. The ability to save and watch videos offline.
3. The ability to keep playing your videos in the background on your phone.
4. Access to all YouTube Originals.

The $11.99 price point fits neatly into the willingness to pay of YouTube’s core market: Millennials.

Our …