YouTube is working on a lower-cost subscription option called "Premium Lite." The new plan would give users an ad-free experience on most videos at a reduced price. According to a report from Bloomberg, the plan is expected to roll out in select markets, including the US, Australia, Germany, and Thailand.

A YouTube spokesperson confirmed the development, saying, “As part of our commitment to provide our users with more choice and flexibility, we’ve been testing a new YouTube Premium offering with most videos ad-free in several of our markets. We’re hoping to expand this offering to even more users in the future with our partners’ support.”

What is YouTube Premium Lite?

YouTube Premium Lite is a stripped-down version of the existing YouTube Premium plan. It allows users to watch most videos without ads but removes other features like offline downloads, background playback, and YouTube Music benefits. This differs from the full YouTube Premium plan, which costs $13.99 per month and removes ads entirely.

This isn’t the first time YouTube has tried a budget-friendly alternative. The Verge reports that the platform initially piloted Premium Lite in select European countries for about €6.99 per month but discontinued it last year. However, the new version could be different. It may still show some ads on music videos and Shorts while keeping the overall ad experience minimal.

How much will YouTube’s Premium Lite cost?

YouTube has not officially disclosed the pricing for Premium Lite. However, early tests with some users in Australia suggest that the plan could cost half the price of the full YouTube Premium subscription. 

Why is YouTube bringing back Premium Lite?

YouTube’s decision to reintroduce Premium Lite comes as other streaming services see success with lower-cost ad-supported plans. Competitors like Netflix have seen success with ad-supported models and Spotify recently launched a new program where subscribers in certain regions can watch videos without ads. 

The platform appears to be adjusting its approach to attract and retain subscribers. Introducing a lower-priced plan could help YouTube retain users who might otherwise turn to other platforms for an ad-free experience. Also, if this pricing holds, Premium Lite could appeal to users who want fewer ads but don’t need the full set of Premium features.

Despite the cheaper subscription plan, advertising will remain a major part of YouTube’s revenue model and its ad business remains strong. Google reported that YouTube’s ad revenue grew 14% year-over-year in Q4 2024, reaching $10.47 billion in a single quarter. 

The company seems to be adapting its subscription models to match changing viewing habits. Recently, YouTube CEO, Neal Mohan, said more people are watching YouTube on TVs than on mobile devices. If Premium Lite proves successful, it could become a permanent option in YouTube’s subscription lineup.

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