Alphabet Inc.’s YouTube has unveiled a new $7.99 monthly subscription service, “Premium Lite,” designed for users seeking an ad-free experience for most videos — excluding music content. This move positions YouTube to more directly rival streaming giants like Netflix and Disney.
The “Premium Lite” plan caters to viewers who rarely watch music videos or use YouTube for music streaming. While YouTube remains a key player in the music streaming industry, a significant portion of its audience focuses on non-music content. The new plan aims to attract these users by offering an affordable, streamlined alternative.
YouTube’s current $13.99 Premium subscription provides an ad-free experience across all videos, including music, while the $10.99 Music Premium plan eliminates ads solely for music content, leaving ads on other videos. The “Premium Lite” plan, in contrast, offers a middle-ground option for those uninterested in ad-free music streaming.
YouTube’s Vice President of Engineering, John Harding, explained that the company identified a growing demand for such a plan, particularly in markets like the United States, where users often already subscribe to other music streaming platforms like Spotify, Apple Music, and Amazon Music.
“We realized we hadn’t quite matched the needs of users who don’t prioritize music content, so this plan fills that gap,” said YouTube Premium’s Product Director, Jack Greenberg.
YouTube initially tested “Premium Lite” in countries including Australia, Germany, and Thailand last year. According to Harding, early data revealed the plan attracted first-time subscribers, some of whom later upgraded to the full Premium service — a promising trend, with more users upgrading than downgrading.
The new plan’s launch comes as YouTube’s subscriber base continues to grow. The platform recently announced it had surpassed 125 million paying subscribers, up from 100 million in January 2024 — a figure that includes users on free trials.
Although advertisements remain YouTube’s primary revenue stream, contributing $36 billion to Alphabet’s $350 billion total revenue in 2024, subscriptions are becoming an increasingly important source of income. While Alphabet has not disclosed specific subscription revenue figures, CEO Sundar Pichai revealed in October that YouTube’s combined ad and subscription revenue had exceeded $50 billion over the previous year.
Philipp Schindler, Alphabet’s Chief Business Officer, also highlighted last year that subscription growth was positively impacting YouTube’s overall revenue and benefiting content creators.
The U.S. rollout of “Premium Lite” follows a price increase in 2023, when YouTube raised the cost of its Premium and Music Premium plans by $2 and $1, respectively.
