YouTube pilots cheaper subscription in India as ad-free demand rises

YouTube is expanding its Premium Lite pilot to India, introducing a lower-cost subscription tier at INR 89 per month. The option provides ad-free viewing for most videos, excluding music and Shorts, and is available across phones, laptops and connected televisions (CTV). The rollout is set to be completed nationwide in the coming weeks.

The move comes as YouTube Music and Premium collectively surpassed 125 million global subscribers, including trial users. Parent company Alphabet has more than 270 million paid subscriptions, with YouTube and Google One driving growth, according to chief executive Sundar Pichai. In an April earnings call, he said YouTube’s revenue exceeded $50 billion over the previous four quarters.

Balancing affordability and features

Since launching its subscription products, YouTube has emphasised offering viewers flexibility. Premium Lite is pitched as a budget-friendly alternative for audiences seeking fewer ads without paying for the full suite of Premium features such as offline downloads, background play and ad-free music.

In a blog post, YouTube stated that it has been testing Premium Lite to ensure it has the right balance of features and benefits for those viewers who want to watch most videos ad-free. While Lite excludes certain functions, the tier allows access to the platform’s broader catalogue, from dramas and podcasts to gaming streams.

The service positions itself against India’s standard Premium plans, which currently start at INR 89 for students, INR 149 for individuals, and INR 299 for families. Music Premium plans begin at INR 59 for students, INR 119 for individuals, and INR 179 for families. These were increased by 12 to 58 per cent in August 2024, signalling the platform’s effort to align pricing with rising demand and costs.

India is one of YouTube’s most critical markets, both in terms of user base and advertising. By offering a cheaper subscription tier, the company appears to be targeting price-sensitive consumers in a country where ad-supported viewing dominates but subscription revenues are beginning to scale.

The introduction also reflects an ongoing effort to expand monetisation avenues for creators and partners. “YouTube Music and Premium, and the expansion of Premium Lite, also continue to create additional revenue opportunities for our creators and partners,” the company said in the blog post.

CTV adoption reshapes advertiser strategies

The pilot arrives at a time when YouTube is expanding its role in connected TV. In India and Japan, the platform is already the most-watched streaming service on CTV, according to Google.

Data shared by the company indicates 85% of viewers in India prefer watching YouTube on CTV over linear television, with more than half logging 21 minutes or longer of watch time per session. Globally, audiences now watch over one billion hours of YouTube content on TVs daily.

“YouTube and CTV also have great momentum in the Asia-Pacific (APAC), where we are seeing a substantial increase in viewing across countries,” said Dan Taylor, vice-president, global ads, Google, at a recent virtual media roundtable. “For example, in most APAC countries, YouTube’s CTV watch times have more than doubled in the past three to four years. In Taiwan, it has more than tripled.”

This trend is influencing advertising strategies. As CTV gains traction, marketers are increasingly incorporating YouTube inventory into their media plans. Positive consumer responses to CTV ads, compared to linear television, are reshaping brand priorities.

AI bets on advertising

Alongside subscriber growth and shifting viewing habits, YouTube’s advertising engine continues to be bolstered by Google’s investments in artificial intelligence. “Google will continue investing in artificial intelligence (AI) tools to enhance brand marketing and ad campaigns,” Taylor said. He added that the company remains an “AI-first company with a full stack approach to AI innovation,” noting that Google’s AI infrastructure and research feed directly into its advertising products.

For YouTube, Premium Lite sits at the intersection of two priorities: sustaining subscriber growth while accommodating India’s cost-conscious users. The pilot’s success will hinge on whether consumers see sufficient value in partial ad-free access when full Premium remains relatively more expensive.

At the same time, the company faces dual pressure: to demonstrate stronger subscription revenues while defending its advertising dominance in a market leaning heavily toward mobile and CTV. The outcome of this pilot could determine how aggressively YouTube scales similar tiers across other emerging markets.