Is Google Launching a Cheaper YouTube Premium without Music?
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Synopsis
Google is on the verge of unveiling a budget-friendly version of YouTube Premium in South Korea that excludes music streaming. This potential launch is in direct response to ongoing scrutiny by the country's antitrust authority regarding the company’s competitive practices. How will this move impact consumers and the market?
Key Takeaways
- Google is exploring a budget-friendly YouTube Premium option.
- The new version may exclude music streaming.
- The move is a response to antitrust scrutiny in South Korea.
- Current YouTube Premium costs 14,900 won per month.
- The FTC is investigating Google for potential unfair practices.
Seoul, May 22 (NationPress) Google is considering the launch of a more affordable version of YouTube Premium in South Korea, omitting the music streaming feature. This initiative is part of efforts to alleviate concerns regarding alleged anti-competitive behavior, as indicated by the nation’s antitrust authority on Thursday.
This proposed change comes amid ongoing discussions between the tech giant and the Fair Trade Commission (FTC), which has been investigating Google for potential violations of fair trade regulations related to the bundling of YouTube Music with its premium subscription.
In a report issued last July, the FTC accused Google Korea of unfairly combining YouTube Music with YouTube Premium, thereby limiting consumer choices and exploiting its market power, as reported by Yonhap news agency.
The regulator asserts that this practice coerced consumers into subscribing to both services, thus constraining options for those interested solely in ad-free video streaming.
Instead of engaging in a lengthy legal confrontation, Google has proposed a corrective action plan under the FTC’s consent decision procedure. This allows the FTC to halt its investigation if the company voluntarily suggests measures that mitigate the alleged consumer harm.
The FTC stated, "We will assess the validity and suitability of Google's proposed corrective actions and will prepare a final consent decision plan, though a timeline for this decision remains undisclosed."
Currently, YouTube Premium is priced at 14,900 won (US$10.79) monthly in South Korea, while YouTube Music is available separately for 11,990 won ($8.38) per month.
In the United States, YouTube has recently expanded its Premium Lite pilot program to local users, with the Premium Lite plan available for $7.99 per month, a significant reduction from the full YouTube Premium subscription cost of $13.99.
Last July, Google faced accusations of providing YouTube Music streaming to users of the ad-free YouTube Premium plan without additional charges, in violation of fair trade laws. The FTC has been conducting an on-site investigation since February of last year.
Officials have stated that the inquiry aims to determine if Google has abused its market dominance, thereby hindering fair competition within the industry.
Point of View
It’s crucial to recognize that Google's potential launch of a cheaper YouTube Premium reflects a significant shift in response to regulatory pressures. This move could enhance consumer choice in South Korea while addressing valid concerns raised by the Fair Trade Commission regarding competitive practices. It’s a step that aligns with the nation’s commitment to fair trade principles.
NationPress
01/06/2025
Frequently Asked Questions
What is the proposed change in YouTube Premium?
Google is considering launching a less expensive version of YouTube Premium in South Korea that does not include the music streaming service.
Why is Google making this change?
The change aims to alleviate concerns regarding alleged anti-competitive practices as investigated by South Korea's Fair Trade Commission.
What are the current prices for YouTube Premium and YouTube Music?
YouTube Premium costs 14,900 won (US$10.79) per month, while YouTube Music is available separately for 11,990 won ($8.38) per month.
What is the Fair Trade Commission's role in this situation?
The FTC is investigating Google for potential violations related to bundling services and has issued complaints regarding unfair trade practices.
What options does Google have to resolve this situation?
Google has proposed a corrective action plan that could allow the FTC to suspend its investigation if the measures effectively address the concerns.
