YouTube Lite to Launch in Korea Following fair Trade Commission Resolution
A new, more affordable youtube viewing option – YouTube Lite – is slated for release in Korea, following a consent resolution with the Fair Trade Commission (FTC) addressing concerns over potential anti-competitive practices. The ad-free plan, more than 40% cheaper than the standard YouTube premium, represents a notable shift in Google’s strategy for the Korean market and a commitment to supporting the domestic music industry.
The FTC announced on November 27th that it had finalized the consent resolution, initially proposed on November 19th, in response to allegations of “tie-in sales” by Google. The core of the issue revolved around whether Google was unfairly leveraging its dominance in the video streaming market to promote its YouTube Music Premium service. Korean consumers often prefer using local music streaming services like Melon, and the previous lack of a dedicated, ad-free YouTube video-only plan was seen as a constraint.
Currently, Google offers YouTube Premium – a combined video and music service – and YouTube Music Premium, a music-only option. Until now, a dedicated, ad-free YouTube video-only plan has been unavailable. YouTube Lite aims to fill this gap, catering to consumers who prefer utilizing domestic music streaming services like Melon alongside their YouTube video consumption.
Initially, the proposed YouTube Lite lacked features like background playback and offline storage. However, following public feedback, these popular functionalities were incorporated into the final agreement. A key distinction remains: while ad removal will be standard, background playback and offline storage for non-music content will only be available if the music rights holder permits it.
As a senior official explained, “In overseas countries, the officially released YouTube Lite only provides an ad removal function. Considering the purpose of launching YouTube lite through a consent resolution in Korea, unlike overseas, Google decided to provide additional background playback and offline storage functions to domestic consumers.”
Pricing for YouTube Lite will be 8,500 won per month for Android and web users, and 10,900 won for iOS subscribers. This is significantly lower than the current YouTube Premium costs of 14,900 won (Android/web) and 19,500 won (iOS). Google has committed to maintaining a competitive price ratio – no higher than in major overseas markets – for at least four years. Furthermore, the price of YouTube Premium will remain stable for at least one year following the launch of YouTube Lite.
Beyond the new subscription tier, Google will contribute 30 billion won to a “win-win fund” managed by EBS, a Korean educational broadcasting company, to bolster the domestic music industry. EBS will independently administer the fund, focusing on expanding its live performance program, ‘Space Sympathy,’ and reviving the artist discovery program, ‘Hello Rookie,’ which was discontinued in 2022.
Notably, plans for a two-month free trial and reseller discount program were removed from the final resolution due to concerns they could be used to promote Google’s own products. “There were concerns that YouTube Lite’s extended free trial and reseller discount program could be used as a means of promoting or promoting google’s own products, so we adjusted the related win-win fund to be integrated and utilized as a support plan for the music industry,” one director clarified.
Google is aiming for a phased rollout of YouTube lite, beginning with a limited release to select consumers followed by a wider launch after a 4-6 week trial period. While a specific launch date remains unconfirmed, officials anticipate the service will be available to all Korean consumers within the year. “It is difficult to tell a specific date, but the product will be released soon,” a director stated, adding that “technical preparations are needed to launch it for 100% of domestic consumers, so we plan to launch it after a trial period.”
The FTC emphasized that the consent resolution was chosen as a swift and effective means of addressing the concerns, avoiding a potentially lengthy legal battle. “If actual sanctions had been used, it is highly likely that consumer inconvenience would have continued for a long time as the litigation process alone would have taken several years to launch the product,” an official noted. The FTC also defended the consent resolution system, stating it is indeed a widely used tool for restoring competitive order and facilitating discussions with companies regarding new product launches and conditions.
The Fair Trade commission will continue to monitor Google’s implementation of the resolution quarterly, working with the Fair Trade Mediation Service to ensure a fair trading order is maintained in the Korean market.
