The Real Math Behind YouTube Premium's Latest Price Increases

Is Google's claim of "supporting creators" with the new price hike justified? Let's analyze the numbers and uncover the real story behind YouTube Premium's increases!


Google's Perspective


Google is raising YouTube Premium prices worldwide to levels that many subscribers now consider 'not worth it'. While Google claims they 'don't take these decisions lightly' and says it's to support content creators, let's analyze if the numbers actually justify these increases.


In business, one key number reveals how successful a company truly is - a single figure that tells the whole story: Return on Equity (ROE). Think of putting $1,000 in a bank account at 3% annual interest. After a year, you earn $30 (3% return). In business, 10-12% is considered healthy ($100-120 profit per $1,000).


Google's ROE? A staggering 32% (Net Income: $94.3B / Total Equity: $294.3B). For every $1,000 invested, Google makes $320 in pure profit annually. So when YouTube Premium subscribers see their prices increase by 40-50%, they should realize this hike is feeding Google's already impressive 32% annual return, likely pushing it even higher if everything goes according to Google's vision.


Behind closed doors, Google executives are probably planning how to capture an even larger share of global wealth, with users needing a subscription just to breathe. The irony? America was built on Adam Smith's capitalist principles, where monopolies were seen as enemies of free market competition. The situation seems fundamentally flawed, from any angle you can see it.


The Content Creators' Side


Looking back at YouTube's early days, creators produced quality content without earning anything - it was purely about passion and hobby. Then came the era of influencers, who built professional studios and gathered millions of subscribers.


The Numbers tell an interesting story:
• Setup costs: $7,000-$12,000 (avg. $10,000)
• Mid-sized channel (100K subscribers):
   - Monthly views: 200,000
   - Annual income (after taxes): $41,147
   - Monthly net income: $3,429


This means a 400% annual return on investment, with creators recovering their initial costs in just three months! The average content creator's return actually surpasses Google's impressive numbers.


The core issue: creators are focused on becoming wealthy quickly, leaving their underpaid regular jobs for content creation. Should we financially support someone who's seeing such massive returns while doing what they love? Many would create content even without payment from Google, just as they did in YouTube's early days. And yes, we should recognize, in that case too, that many creators have genuinely helped people through their original content, as Google did.


The Choice Is Yours


So, dear YouTube Premium subscriber: are you willing to pay 50% more on your subscription to increase the profits of all those mentioned above? The numbers are in front of you - the choice is yours.