Naira Fall: YouTube Increases Subscription Prices for Premium Services by 44.4% in Nigeria
- The depreciation of the naira against the US dollar is forcing international and local companies to make price changes
- Following Multichoice, the latest adjustment comes from Google, which has announced new fees for its music premium subscription
- Since the Central Bank of Nigeria (CBN) unified the foreign exchange market in 2023, the naira has weakened
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
YouTube Music has announced a significant hike in its subscription fees for Nigerian users, marking its first increase since 2020.
The premium individual plan will now cost N1,300 per month, up from N900, a 44% increase.
Source: Getty Images
The family plan rises to N2,000 from the previous price of N1,400.
Subscribers were notified of the price adjustments via email, where the company cited the need to enhance service quality and support artists as reasons for the increase.
In a statement to subscribers, YouTube Music stated,
"To continue delivering great service and features, we’re increasing your price to NGN 1,300.00/month.
"We don’t make these decisions lightly, but this update will allow us to continue to improve Music Premium and support the artists you listen to."
BusinessDay reports that a similar adjustment was made in South Africa, where the individual plan rose by 8% to R64.99 and the family plan by 11% to R99.99.
YouTube Music said that the decision was necessary to sustain service improvements and uphold support for creators globally.
Source: Getty Images
Why YouTube increases subscription prices
In the last few months, major technology firms with subscription-based services have increased their rates amid the sharp decline of the naira and rising inflation.
Spotify recently announced an increase in its subscription fee to N1,300 per month from N900.
Similarly, Netflix, Google Cloud service and Microsoft have also adjusted their pricing.
Legit.ng also reported that Multichoice the owner of DSTV, GOtv also adjusted its subscription prices citing, citing inflation, rising energy costs, content licensing expenses, and currency volatility.
This decision led to a legal battle with the FCCPC, which challenged the price hike in court.
The Central Bank of Nigeria's unification of the foreign exchange market in 2023 contributed to the naira's depreciation, with the exchange rate falling from N471/$ before the policy to over N1,600.
At the official forex market, the naira closed at N1,611.08/$1, while in the black market, it is sold at N1,620.
Google cloud services
Earlier, Legit.ng reported that Google has announced a 100% increase in its cloud storage subscription fees in Nigeria, with the new prices set to take effect from April 7.
The cloud storage service enables users to manage their storage across Google Drive, Gmail, and Google Photos.
According to Google, the monthly price for the 'Google One (100 GB)' plan will rise from N950 to N1,900.
Google One’s basic plan will be increased to N2,900, up from the previous rate of N1,200.
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Source: Legit.ng
