In a move affecting users globally, Alphabet Inc. GOOG GOOGL subsidiary Google’s YouTube has announced price increases for its Premium and Music services, impacting legacy subscribers in the U.S. and Europe.

What Happened: This adjustment will see U.S. subscribers with older plans, such as those from Google Play Music or YouTube Red, transitioning to a $13.99 monthly rate in the new year.

European users have also been notified of similar changes, with some receiving a three-month grace period at their current rates, according to a report by The Verge.

Paul Pennington, YouTube’s communications manager, confirmed the price adjustments will affect both new and existing subscribers in countries such as Bulgaria, Costa Rica, and Spain.

Subscribers who initially joined through Google Play with early adopter pricing will receive three extra months at their existing rate.

A Reddit post highlighted a legacy subscriber in Spain, whose monthly fee will rise from 7.99 euros to 10.99 euros, still below the 12.99 euros rate for new individual music subscribers.

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Why It Matters: The price hike comes amidst YouTube’s strategic expansion and revenue growth. In October, YouTube extended its “Premium Lite” plan to more countries, offering a cheaper subscription with fewer ads. This move provides an alternative for users seeking fewer ads without additional perks.

Earlier in May, YouTube introduced the AI-powered “Jump Ahead” feature for Premium users, allowing them to skip commonly skipped sections of videos, enhancing user experience.

Furthermore, YouTube’s financial success was highlighted in October when it reported generating $50 billion in combined advertising and subscription revenue over the past year.

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