Photo Credit: YouTube Circa 2021
Google debuted a YouTube Premium Lite plan in 2021 for limited testing in some countries. Last year, it axed that plan—but now it looks like a version of it is coming back for more testing.
Google has confirmed it is testing a ‘different version’ of YouTube Premium Lite in Australia, Germany, and Thailand. YouTube may present users in these regions with an option to sign up for a YouTube Premium Lite plan, though there are scarce details on what makes this version of Google’s test different from the first time around.
When it debuted in 2021, YouTube Premium Lite offered a scaled-back version of the full Premium subscription. It only removes ads from videos, does not offer YouTube Music access, offline downloads, or background play. Google says the new Premium Lite may not remove ads entirely—rather it will show ‘limited ads’ as compared to the original which eliminated them entirely.
When it debuted, YouTube Premium Lite was half the cost of a YouTube Premium subscription. For the new version, Australian users have reported seeing prices listed at AUD 11.99 per month (YouTube Premium is AUD 22.99), while others have reported seeing a price as low as AUD 8.99. It appears Google is doing some A/B testing on pricing to see which price points get users to fork over dosh for ‘limited ads and no features.’
YouTube Premium Lite’s first trip around the globe never made it to the United States before Google gave the plan the axe. So it’s unclear if this newly revived version of the plan will ever launch in the United States. It’s also unclear if it will fully roll-out in the countries where Google is testing the new feature. For now, Google appears to be gathering data about people’s ad tolerances and the price Google can ask for a ‘limited ad’ experience without backlash.
Removing ads from streaming services has become an expensive endeavor for customers over the years. For video streaming services like Amazon Prime and Max, offering an ad-supported tier and then ratcheting up the amount of ads you see for the lower price creates new income sources for the streamer. Streamers generally prefer users to sign-up for an ad-supported plan which generates more money through multiple revenue streams.
A general breakdown of services that offer both an ad-supported tier and a ‘Premium’ ad-free tier highlight that most subscribers will go for the ad-supported version. That’s especially true with video streaming subscriptions were 84% of Peacock subscribers, 65% of Hulu subscribers, and 40% of Disney+ subscribers embrace the ad-supported tiers on offer.
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