US tech giant Google is reportedly reviewing the introduction of YouTube Premium Lite in Korea, a low-cost subscription plan that offers ad-free video streaming without the full suite of Premium features, according to industry sources on Tuesday.
Google Korea has recently proposed the introduction of the Premium Lite plan to the Korea Fair Trade Commission as part of a voluntary corrective measure, sources said. The proposal comes as the antitrust regulator investigates allegations that Google leveraged YouTube’s dominance by bundling YouTube Music with its Premium service, potentially harming competing music streaming platforms.
Google and the FTC are negotiating over a consent decree that may include the rollout of YouTube Premium Lite in the Korean market. This new tier allows ad-free streaming for most videos except music videos, but does not allow offline downloads or playing videos in the background. It comes at a lower monthly fee of $7.99, compared to $13.99 for the full Premium service.
The IT giant had piloted the YouTube Premium Lite service in select regions such as the Netherlands and Belgium in 2021 but discontinued it in 2023. Last month, it officially launched the service in a limited number of countries, including the US, Germany, Australia and Thailand. The absence of Korea from the list had sparked criticism over Google's perceived neglect of the Korean market.
Industry watchers believe the unbundling of YouTube Music could offer relief to local music streaming providers such as Genie, Bugs and FLO, which have been losing ground to YouTube Music in recent years. If Premium Lite becomes available in Korea, users who previously migrated to YouTube for bundled services may return to local platforms.
As of February, YouTube Music held the top position among music platforms here with 7.24 million monthly active users, surpassing long-time leader Melon (6.77 million MAUs), according to data from Mobile Index. Other domestic players have seen a gradual decline in user base amid intensified competition.
The Korea Creative Content Agency noted in its user survey last year that many YouTube Music users access the service through Premium subscriptions, rather than signing up for it independently. This bundling effect has been a focal point in the ongoing regulatory scrutiny.
Some watchers, however, caution that introducing multiple pricing options could further entrench YouTube’s dominance. With YouTube already expanding its footprint in commerce and gaming, enhanced price segmentation may accelerate user migration toward the platform.
“There is a risk that more users will be drawn into YouTube’s ecosystem by attractive pricing, reinforcing its market dominance while further marginalizing local platforms,” said an industry observer, who asked for anonymity.
Ultimately, the source emphasizes that the key lies in building competitiveness among Korean digital platforms, not only in music but across the broader tech landscape. “Strengthening the domestic industry's capacity to compete with global tech giants like YouTube is crucial for long-term sustainability,” the anonymous source said.
By Jie Ye-eun (yeeun@heraldcorp.com)
