YouTube unveils lower-cost ad-free plan to attract more subscribers
Alphabet is expanding YouTube’s paid options as subscriptions become a growing part of its revenue model.
YouTube has launched a new $7.99 monthly subscription plan called ‘Premium Lite,’ offering an ad-free experience for most videos, excluding music.
The service is aimed at viewers who rarely watch music content and prefer an alternative to YouTube’s $13.99 Premium plan. By introducing this lower-cost option, YouTube hopes to attract users who already pay for other music streaming services.
The company previously tested Premium Lite in several countries, including Australia and Germany, with early results showing strong demand. Many first-time subscribers opted for the new plan, with some later upgrading to the full Premium service.
YouTube now has over 125 million paying subscribers, up from 100 million at the start of 2024, though this includes free trial users.
Advertising remains YouTube’s primary revenue source, generating $36 billion in 2024, but subscriptions are becoming increasingly important.
Alphabet has not disclosed exact figures for YouTube’s subscription revenue, but company executives have confirmed that paid memberships are contributing significantly to overall earnings.
The new plan is part of YouTube’s broader strategy to expand its subscription base while maintaining strong advertising revenue.
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