Microsoft 365 cuts Family/Premium shared storage to 2TB, adds shareable Copilot credits
Microsoft is changing its Microsoft 365 Personal, Family, Premium, and Pro subscriptions: Family and Premium move from 1TB per member (up to 6TB total) to a 2TB shared OneDrive pool, while AI usage credits — including Copilot — become shareable among family members, with the owner able to manage AI access for younger members. New and upgraded subscriptions get shared storage starting October 8, 2026; existing subscribers switch at their first renewal on or after May 2, 2027, with advance notice. Households using more than 2TB must buy extra storage at $10/month per TB, potentially doubling or tripling bills, while the $100-a-month Microsoft 365 Pro plan offers 5TB shared storage and the highest AI limits.
Microsoft is aligning its consumer plans with Google One and iCloud+ by bundling shareable AI credits while shrinking storage, a template that may spread across subscription bundles.
ZDNET’s key takeaways
- Microsoft 365 Family and Premium subscriptions are about to change.
- The new plans will offer shared pools of AI usage credits and OneDrive storage.
- Some subscribers could be forced to move data or pay double or triple their current rates.
If you’ve been to the grocery store lately, you’re probably familiar with the phenomenon of shrinkflation — where the price of a bag of chips or a candy bar stays the same, but the product itself gets smaller.
Microsoft 365 subscribers are about to experience the cloud version of shrinkflation. Microsoft announced today that it will be making changes to its Microsoft 365 Personal, Family, Premium, and Pro subscriptions. The company is positioning the changes as giving subscribers “more flexibility with their AI and cloud storage benefits.” That may be true, but the net effect on subscribers who take full advantage of those subscriptions could be a huge price increase.
#Microsoft#Microsoft 365#Copilot#OneDrive#Google One#Apple iCloud+