YouTube is rolling out Premium Lite, a lower-cost subscription option designed to cater to budget-conscious users seeking an ad-free experience. The move coincides with the platform’s growth to 125 million subscribers across YouTube Premium and YouTube Music.
A New Subscription Option for Ad-Free Viewing
YouTube’s Premium Lite will be priced at $7.99 per month, the company announced on Wednesday, a more affordable option than the $13.99 per month cost of YouTube Premium.
This new tier will allow ad-free viewing on most videos, including content in gaming, fashion, and beauty, although ads will remain in music videos and YouTube Shorts.
After testing the plan in select countries, YouTube is now launching Premium Lite in the U.S. as part of its push to reach a broader audience seeking an affordable ad-free experience.
Rapid Growth in YouTube’s Subscriber Base
YouTube’s Premium and Music subscriptions have seen impressive growth, rising from 100 million subscribers last year to over 125 million today. The platform’s influence in the streaming market continues to expand, with YouTube TV now surpassing 8 million subscribers.
Lyor Cohen, YouTube’s Global Head of Music, celebrated the milestone in his annual letter, noting, “An incredible milestone that many laughed off as impossible when we first launched.” He further emphasised that this growth is a key part of YouTube’s goal to become the top revenue contributor to the music industry, adding,
“This momentum is critical to our goal of becoming the No. 1 contributor of revenue to the industry, and we won’t stop until we get there.”
AI and the Revival of Music Videos
YouTube is eyeing the future by focusing on innovations like AI tools and “the rebirth of the music video,” as described by Lyor Cohen. He sees YouTube as today’s MTV, where both iconic artists and new talent make cultural waves.
“As I look forward, I’m foreseeing a renaissance of the music video,” Cohen wrote. “It’s not about having the biggest production budget; it’s about sharing authentic hero content that music fans can’t unsee. It’s about using the artist’s most influential asset — the music video — and cutting through the tidal wave of clutter and choice.” Cohen emphasises that music videos are not just content but cultural milestones that can break songs and launch careers.
A Strategic Move for Continued Expansion
YouTube is making a strategic move to grow its subscription base while maintaining ads in music content and Shorts, both crucial revenue streams. The platform’s main priority at the moment is to focus on AI, music videos, and premium content, which will play a significant role in shaping its trajectory.
YouTube aims to attract a wider audience, reinforcing its position as a leader in both the streaming and music industries by introducing a more affordable ad-free option.