YouTube is preparing to launch a budget-friendly subscription plan called Premium Lite focusing on ad-free videos. Unlike the full YouTube Premium plan, this version will exclude music videos, which will still include ads. According to Bloomberg’s Mark Gurman, the new plan is aimed at viewers who consume content beyond music, offering a more affordable alternative.
A YouTube spokesperson stated that the company is committed to providing users with more choices and flexibility, adding that they have been testing a Premium offering with most videos ad-free in several markets. The spokesperson further mentioned that YouTube hopes to expand this offering with the support of its partners. Testing for Premium Lite began months ago in overseas markets and follows a previous ad-free Lite trial in Europe from 2021 to 2023, which was later discontinued.
With competition growing in the podcast space, the introduction of Premium Lite could impact how YouTubers earn money. Traditionally, ad revenue has been their primary source of income, but a wider adoption of this plan might lead to increased subscription-based earnings.
Spotify recently introduced a similar initiative by removing dynamic ads from video content for paying subscribers in select regions. Over 70% of eligible creators opted in, though some top podcasters remain hesitant, uncertain if this model will generate the same earnings as ads.
By offering an ad-free experience at a lower cost, YouTube Premium Lite may encourage fans of ad-free content to stay on the platform rather than switch to competitors like Spotify. The Premium Lite plan will first launch in the U.S., Australia, Germany, and Thailand, marking its debut in the U.S. An official announcement is expected soon, though pricing details remain undisclosed.
