Is Google Launching a Standalone YouTube Subscription in South Korea?

Synopsis
Key Takeaways
- YouTube Premium Lite offers a more affordable option for users wanting only video streaming.
- The initiative is part of Google's response to regulatory scrutiny over bundling practices.
- Prices will be held steady for at least one year to ease user costs.
- A fund will be established to support the Korean music industry.
- Feedback from stakeholders will shape the FTC's final decision.
Seoul, July 15 (NationPress) Google is set to introduce a new premium subscription service for YouTube video streaming in South Korea that will not include music streaming. This initiative comes as a voluntary corrective action to resolve allegations of anti-competitive practices, as announced by the country's antitrust authority on Tuesday.
The new offering, known as YouTube Premium Lite, is expected to be priced at approximately half of the existing YouTube Premium plan, which currently combines both video and music streaming, according to the Fair Trade Commission (FTC), as reported by Yonhap News Agency.
For Android users, the subscription fee for YouTube Premium Lite will be 8,500 won (around US$6.15) per month, while iOS users will pay 10,900 won. These prices are lower compared to similar YouTube subscription options in six other nations, including the US and the UK.
This new subscription plan is part of Google's strategy to rectify its anti-competitive behavior of bundling YouTube Music with its ad-free video streaming service.
Following the launch of this bundling practice in 2020, the FTC initiated an investigation into Google's alleged infringement of South Korea's fair trade regulations in 2023.
The FTC claims that Google has been effectively compelling consumers to subscribe to both services, thus limiting choices for those who only wanted ad-free video streaming, which restricts consumer options and abuses market power.
To avoid a lengthy legal dispute, Google has proposed a corrective action plan that includes launching the standalone video streaming subscription under a process known as a "consent decision". This mechanism enables the FTC to halt its investigation if the company voluntarily offers solutions that address the alleged consumer issues.
The FTC has announced plans to gather feedback from relevant ministries and stakeholders over a 30-day period, concluding on August 14, to decide whether to approve Google's proposal.
Should the FTC give the green light, Google aims to roll out the YouTube Premium Lite plan by the end of this year.
As part of the proposal, Google has committed to maintaining the prices for both YouTube Premium Lite and YouTube Premium for at least one year to ease the financial burden on users.
Additionally, the company plans to establish a 15 billion-won fund to foster the growth of the Korean music industry by identifying new talent and facilitating their participation in global music festivals.