Google to launch YouTube Premium Lite plan in Korea after FTC approval

Google will officially launch its “YouTube Premium Lite” plan in Korea for the first time, with the Fair Trade Commission (FTC) giving approval to the new pricing plan Thursday.

A picture taken on Oct. 5, 2021 shows the logo of Youtube social media displayed by a by a tablet and a smartphone [AFP/YONHAP]

Google will officially launch its “YouTube Premium Lite” plan in Korea for the first time, with the Fair Trade Commission (FTC) giving approval to the new pricing plan Thursday.

The FTC announced Thursday that a plenary session approved Google’s proposed YouTube Premium Lite plan and a consent resolution was finalized.

The Lite plan will now be launched within 90 days of the FTC’s decision being delivered to Google. The exact date of the launch has not yet been announced, but Google reportedly plans to launch a Lite trial service for some selective users as early as this week or next week, and expand it to all domestic consumers as early as the end of the year.

The new plan adds background music playback and offline storage features. For users who do not want mid-roll ads but also do not want to subscribe to YouTube Music, the Lite plan offers a more economical option. Lite is several thousand won cheaper compared to the Premium option, depending on the device used to download the YouTube app.

Google, facing potential restriction from fair trade authorities for restricting consumer choice, previously opted for voluntary remediation and sought a consent resolution from the FTC.

A consent resolution is a system through which a business suspected of violating related laws proposes a voluntary remediation plan. If the FTC deems the plan reasonable after gathering opinions from stakeholders, the case is closed without a determination of legality.

Google was investigated by authorities because it only sold the YouTube Premium plan, priced at 14,900 won ($10) per month, and YouTube Music Premium, priced at 11,900 won, a stand-alone YouTube music service. It did not offer Lite, a stand-alone video service that removes ads.

The Fair Trade Commission (FTC) logo is seen at the FTC offices inside the government complex in Sejong on April 25, 2023. [NEWS1]

The Lite plan is currently available in approximately 20 countries and regions worldwide, including the U.S., Japan, India and Taiwan.

Google’s strategy sparked controversy over bundling music streaming with ad-free videos, and the FTC has been investigating whether the company limited consumer choice and hindered fair competition in the online music market.

Amid the ongoing investigation, Google announced a corrective measure to launch a Lite plan in Korea that not only removes ads but also adds background playback and offline storage features.

The Lite plan allows users to watch most YouTube videos without mid-roll ads, and can play them while running other apps or with the device’s screen on lock mode. Content can also be saved for playback without using mobile data. However, background playback and offline storage are restricted for music content, such as official music videos, or content with separate copyright holders.

Students look into their smartphones at a school in Seoul on Nov. 4, 2024. [YONHAP]

The Lite plan costs 8,500 won for Android and web, and 10,900 won for devices on the iOS. This is up to a maximum of 6,400 won less than the Premium plan.

The FTC said that consumers who do not particularly prefer YouTube Music will be able to use YouTube Lite for videos and subscribe to other music streaming services.

Google pledged to maintain the Lite subscription fee for at least one year from the launch date, and, even if pricing changes occur, to maintain the Lite to Premium price ratio in Korea at a level no higher than that of major countries offering the same features for four years.

The company also agreed to contribute 30 billion won to public broadcaster EBS to support Korea’s domestic music industry. EBS will operate the fund independently for four years, using it to support live performances and broadcast production for its professional music programs.

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]