YouTube Premium Lite: YouTube might soon launch a new budget-friendly subscription plan called "Premium Lite" with a focus on ad-free podcasts and how-to videos. Unfortunately, this subscription will not include music videos and you will still have ads on those.

According to Bloomberg's Mark Gurman, the targeted audience for this subscription plan is viewers who engage with content beyond music, giving a more simpler and affordable option. “As part of our commitment to provide users with more choice and flexibility, we’ve been testing a new YouTube Premium offering with most videos ad-free in several markets.” a YouTube spokesperson stated. They added, “We’re hoping to expand this offering to even more users in the future with our partners’ support.”

The testing for this began months ago in overseas markets, The Verge reported. This comes after the earlier ad-free Premium Lite trial in Europe, which ran from 2021 to 2023 before being discontinued.

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This is a strategic move as more and more people are moving towards podcasts, and there are multiple platforms to choose from. This will bring a change to how YouTubers earn money as their major source of income is usually generated from ad revenue and if this model is widely adopted then this will bring in more subscription-based revenue.

Recently, Spotify made a similar move by removing dynamic ads from video content for subscribers in select regions. While over 70% of eligible creators opted in, many top podcasters are still hesitant, unsure if the new model will match their existing ad revenue. YouTube with its cheaper plan might retain the audience that is more engaged in ad-free shows rather than switching to its competitors like Spotify, a report says.

When can we expect it?

The "Premium Lite" plan will first set foot in the U.S., Australia, Germany, and Thailand, with its first appearance in the US we can expect an announcement soon, though there are no details on pricing yet.

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