YouTube has been testing a low-priced version of its ad-free Premium tier being referred to as “Premium Lite” that is limited to podcasts and how-to clips presented largely without ads. The package is reportedly poised to launch in the United States, Australia, Germany and Thailand, with an aim toward attracting subscribers interested in content other than music videos. Pricing for the new tier has yet to be revealed. YouTube Premium currently costs $14 per month in the U.S. for ad-free viewing of all native YouTube content, including music videos.

Ars Technica speculates that a Premium Lite plan “could cost as little as $7–$8 in the U.S.,” and suggests that based on the early tests “will probably drop a few other features … including background playback and offline downloads.”

“The new tier could change how content creators, better known as YouTubers, make money on the service,” making subscription revenue “a larger and more significant part of their business,” writes Bloomberg, noting that ad revenue has historically comprised the bulk of YouTube creator earnings.

The move follows Spotify’s recent acceleration into video content — including sparing some territories programmatic ads. While “Spotify has said that more than 70 percent of eligible creators and networks opted into the program” it qualified that “a significant number of top podcasters” have not, “over concerns that the new revenue model might not match the amount they are currently making from advertising,” Bloomberg reports.

Adweek points out that while most video streaming services rely primarily on subscriber fees, YouTube has been the opposite, generating most of its revenue from advertising.

“By getting more direct payments from users, YouTube will be less reliant upon advertising eventually, even though ads will be its primary revenue driver for the foreseeable future,” eMarketer Senior Analyst Ross Benes told Adweek.

In February 2024 YouTube announced that YouTube Premium passed 100 million subscribers, while earlier this month the streamer hit another benchmark: more time viewed on TVs than mobile and desktop. As viewing patterns and audience composition changes, the platform would naturally adjust its packaging, experts say.

Ars Technica says YouTube has been experimenting with Premium Lite for the past year, citing tests in Australia where “the options are AU$23 for YouTube Premium or AU$12 for ‘YouTube Premium Lite.’”

“YouTube dominates online video, but it’s absolutely crammed full of ads these days,” with more subscribers turning to ad blockers for help, Ars Technica observes, adding that parent “Google seems to have gotten the message.”