According to Bloomberg, YouTube is preparing to launch YouTube Premium Lite, a lower-cost subscription plan for users who want an ad-free video experience without the extras. The new tier is expected to launch in the United States, Germany, Australia, and Thailand, marking the first time this offering will be available in the U.S.
Unlike the full YouTube Premium plan—which costs $13.99 per month and includes YouTube Music, offline downloads, and background playback—Premium Lite strips away those features. Instead, it focuses on ad-free access to most YouTube videos, except for music content, which still contains ads.
YouTube tested a version of Premium Lite in select European markets in 2021 before discontinuing it in 2023. Bloomberg’s report suggests that pricing for this iteration remains unclear, but early tests in Australia hinted at roughly half the cost of YouTube Premium’s standard price.
A YouTube spokesperson confirmed the service is in development, stating:
“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’s push toward a more flexible subscription model comes as ad revenue remains a key driver for the company. Parent company Alphabet reported $10.47 billion in ad revenue for YouTube in Q4 2024, underscoring the importance of balancing ad-supported and premium offerings. While the company does not break out specific revenue from YouTube Premium, it is grouped under Google’s $11.6 billion subscription business, which includes services like Google One, YouTube TV, and NFL Sunday Ticket.
The Take
The launch of YouTube Premium Lite is part of a growing industry trend toward tiered subscription models, where users pay only for the features they want. This move lets YouTube capture more paying users without cannibalizing its lucrative ad business, offering a middle ground between free, ad-supported content and the full Premium experience.
With streaming services facing increasing consumer price sensitivity, the success of Premium Lite could influence other platforms to introduce similar flexible pricing strategies. Whether users see enough value in paying just to remove ads from non-music videos remains to be seen, but YouTube is betting there’s an audience for it.
