YouTube to roll out “Premium Lite” plan with low price and less ads

YouTube, a video streaming platform, is working on rolling out a premium lite plan that will offer a new lower-priced version of its paid video service. When launched, the cheap subscription package will target viewers who want to watch programs other than videos. 

The premium lite plan will first be launched in the US, Australia, Germany, and Thailand. It will offer features like a vast library of podcasts and “how-to” clips without advertising.

“As part of our commitment to provide our users with more choice and flexibility, we’ve been testing a new YouTube Premium offering with most videos ad-free in several of our markets. We’re hoping to expand this offering to even more users in the future with our partners’ support,” YouTube said. 

YouTube Premium is a $13.99-a-month package in the US that lets subscribers watch everything on the service, including music videos, without ads. 

An October 2024 report by the Verge pointed out that the premium lite plan has been tested in overseas markets for months. The plan will now officially roll out globally for the first time. 

The lower-priced plan holds a couple of potential as it might allow users of certain shows who want to avoid ads. 

The new tier could change how YouTubers (content creators) make money on the platform as it holds the potential to make subscription revenue a larger and more significant part of their business. Notably, ad revenue has made up the bulk of their earnings on the platform.

To watch music videos without ads, YouTube customers will still need to sign up for YouTube Premium.

The prospective plan follows Spotify Technology’s push into video content where the Swedish company launched a program in which subscribers in certain territories no longer see dynamic ads in video content. However, for YouTube, video creators can personally read ads during their videos that can’t be stripped out.

Spotify has said that more than 70 per cent of eligible creators and networks opted into the program. Meanwhile, it added that a significant number of top podcasters have yet to do so over concerns that the new revenue model might not match the amount they are currently making from advertising. 

Similar Read: Netflix, YouTube, others might start paying telecom maintenance fees in South Africa.

The different shades of YouTube premium lite since 2021

YouTube began piloting Premium Lite in parts of Europe in 2021. However, in September 2023, it suspended the testing phase. YouTube resumed the testing phase in Australia, Germany, and Thailand in October 2024. 

During that period, a spokesperson of the company, Jessica Gibby, confirmed the development to The Verge saying that it has been testing a “different version” of the subscription with “some users in Australia, Germany and Thailand for several months.

The report noted that while the previous version of Premium Lite had no ads on YouTube and YouTube Kids, this new testing version has limited ads. In a footnote, YouTube writes that ads may appear on “music content and Shorts” and users might see “non-interruptive ads when you search and browse.”

In addition, this version of Premium Lite doesn’t offer ad-free access to YouTube Music, the ability to download and play videos offline, or the ability to listen to videos in the background, which also weren’t available with the old Premium Lite.

The “premium lite’ talk follows a recent consideration by the South African Association for Communications and Technology (ACT) to make major streaming platforms like Netflix, YouTube, Disney+, and Amazon Prime Video pay to South African telecom operators in what was referred to as “fair share”. 

The agency made moves to implement the policy in August 2024 under which over-the-top (OTT) players contribute to network costs such as building and upgrading costs, consistently investing in network expansion, capacity upgrades, and service enhancements.

OTT is a term used by network operators to describe streaming platforms that rely on telecom infrastructure for their operation. The policy will also include platforms like WhatsApp, which compete directly against mobile networks’ core services such as voice and messaging.

The communications agency argued that OTT revenue generation directly relies on network quality with the streaming platforms already a competitor with service providers like Cell C, MTN, Telkom, and Vodacom.

But for end users, the proposed changes are set to result in higher-quality services. The communications agency noted that the country needs a flexible, non-disruptive, and coordinated approach to “building an information society.”