Google is expected to launch 'YouTube Premium Lite' in Korea within the year, which allows you to watch videos on YouTube without ads. The monthly subscription fee is set at 8,500 won for Android and 19,000 won for iOS. It is about half the price of the existing YouTube Premium. However, the music service YouTube Music is excluded, and background playback and offline storage functions are not provided.
The Fair Trade Commission announced on July 15 that it would disclose a provisional consent decree on Google’s alleged bundling of YouTube Music and collect opinions until the 14th of next month. The Fair Trade Commission has been investigating Google’s act of bundling YouTube Music with YouTube Premium since February 2023, viewing it as a bundling prohibited under the Monopoly Regulation and Fair Trade Act. In response, Google proposed voluntary corrective measures such as launching YouTube Premium Lite and freezing existing premium fees, and the Fair Trade Commission accepted these and finalized the provisional consent decree.
The YouTube Premium Lite, which is being released this time, is a product that is already in operation in some countries, including the United States, and is being introduced for the first time in Korea. It is 8,500 won per month for Android and the web, which is cheaper than the United States (7.99 dollars, approximately 11,000 won). iOS is set at 19,000 won according to Apple’s in-app payment policy. Considering that the existing YouTube Premium price is 14,900 won, the Lite plan is about 57 percent.
Google has decided not to raise prices for at least one year after the launch of YouTube Premium Lite, and to maintain the price ratio for YouTube Premium at a level no higher than that of major overseas countries for the next three years. In addition, the Fair Trade Commission will manage prices for four years after the launch of YouTube Premium Lite. The existing YouTube Premium prices will also be frozen for one year after the launch.
Consumer benefits are also provided. New subscribers and existing premium subscribers who switch to the Lite plan will be given a two-month free trial. The Fair Trade Commission estimates that approximately 2.1 million domestic consumers will benefit from this. Google plans to offer the Lite plan at a discounted rate through partnerships with resellers such as telecommunications companies and sell it in bundles with various products.
Support for the domestic music industry is also included. Google plans to invest 15 billion won in discovering 48 new artists and supporting their overseas expansion. This measure, which is separate from existing support measures, will have a specific implementation plan prepared through consultation with the Fair Trade Commission.
The domestic launch of YouTube Premium Lite will be within 90 days from the date the Fair Trade Commission’s consent decision is finalized and the decision is sent to Google. The Fair Trade Commission expects that it will be launched within the year. Kim Moon-sik, director of the Fair Trade Commission’s Market Monitoring Bureau, said, “The Lite plan will expand consumer choice with its low price and free benefits, and will also have a positive impact on the competitive environment of the domestic OTT and music markets.”
