Photo Credit: Muhammad Asyfaul
A new report suggests YouTube’s pared down ‘Premium Lite’ subscription offering is arriving soon. The option would de-couple the YouTube Music subscription, offering those who purchase it ad-free YouTube (but not music). How will this impact music subscription numbers going forward?
YouTube’s strength this year was revealed to be its offering of video podcasts. The new Premium Lite subscription would give users access to ad-free podcasts, how-to videos, and gaming videos—but not music videos. Pricing for the tier is unknown, but speculation suggests it could be priced at around half of the current offering, which is $13.99. Bloomberg suggests the new package will be announced soon in the United States, Australia, Germany, and Thailand.
YouTube’s leadership is likely hoping to keep the platform’s massive lead on video podcasts as other players like Apple and Netflix warm to the format. An Edison Research survey conducted in October 2024 found that YouTube is the top platform podcast listeners prefer—thanks to the video component. 31% of weekly podcast listeners aged 13 and up choose YouTube as their format over Spotify (27%), and Apple Podcasts (15%).
As video and audio content continue to overlap, creators and listeners are benefitting from the dynamic and engaging experience offered by video. One of the key factors driving YouTube’s popularity are younger listeners tuning in for video podcasts. 84% of Gen Z monthly podcast listeners report listening to or watching podcasts with a video component. 49% of Gen Z said video provides a better understanding of context/tone through facial expressions and gestures. 45% responded that they feel more connected to the host and guest if there is a video component to the podcast.
The YouTube Premium Lite subscription is likely aimed at capturing dollars from this younger demographic that would pay for ad-free video podcasts—but may subscribe to another music service like Spotify or Apple Music. Video podcasts are often an hour or longer, which means ad-breaks throughout the podcast occur every few minutes.