YouTube TV was previously regarded as a logical alternative to the exorbitant costs of cable TV services.
However, the passage of time has witnessed a notable shift in this perception, owing to the consistent escalation of the service’s pricing. Presently, Google finds itself embroiled in a contentious situation as a result of claiming that YouTube TV continues to exhibit a significantly more economical pricing structure in comparison with standard cable TV.
The National Advertising Division, an integral component of the BBB National Programmes with a noble mission to uphold the veracity of advertising, has duly issued an official “recommendation” to Google, urging them to desist from promoting YouTube TV on the grounds of its purported cost advantage of being “$600 less than cable.”
The advertisements for YouTube TV claim its superiority over comparable autonomous cable services, which offer two sets of set-top boxes for each household. The claim is further based upon the pricing structure of YouTube TV as of January 2023, which stood at $64.99 per month. Since then, the price has risen to $72.99 a month while these advertisements have been running on YouTube TV.
Charter Communications, the esteemed owner of Spectrum, has brought forth a matter of concern to the National Advertising Division (NAD), asserting that Google’s claims is fundamentally flawed. It is contended that numerous cable companies, Spectrum being no exception, presently offer the option of streaming-based access to live television channels, without any additional charges, for secondary televisions and mobile devices.
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NAD assessment of the ads
According to the National Association of Distributors, the price calculation underlying the challenged claim includes the cost of two set-top boxes per home for standalone cable”. NAD, in its assessment, found that the aforementioned juxtaposition between YouTube TV’s pricing and the broader concept of “cable” is not an apt one. This is due to the fact that cable providers such as Charter offer streaming alternatives that do not necessarily necessitate the use of a set-top box.
NAD has issued a recommendation urging Google to cease its claim in advertising that YouTube TV offers a cost reduction of “$600 less than cable.” However, the NAD permits the company to continue in making “truthful and non-misleading claims” concerning the pricing of the service in relation to traditional cable services.
An example of YouTube TV using the tagline “$600 less than cable” can be discovered in an advertisement shared in June.
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When compared to cable, does YouTube TV still provide a lower price?
Earlier this year, when YouTube TV’s price increased to $72.99/month, it was discovered that the service was still “less than cable,” but only slightly.
YouTube’s yearly cost is now roughly $875, assuming no add-ons, but Spectrum’s normal subscription with two set-top boxes is over $1,400 before calculating surcharges. DirecTV, Comcast, and other traditional TV alternatives were also more costly than YouTube TV in our results, but Google’s claim of “$600 less” is surely quite a significant stretch considering the new price rise and modifications from other providers.
In a statement, though, Google said that it “unequivocally disagrees” with the NAD’s decision and that it will appeal because the company “believes that consumers broadly understand the difference between traditional cable and streaming and that they do not interpret ‘cable’ or ‘standalone cable’ offered via a ‘cable box’ as encompassing streaming services, regardless of who provides them.”