Google is set to launch a new, standalone YouTube subscription service in South Korea that excludes YouTube Music, a move designed to address concerns raised by the country’s competition authority about unfair bundling practices, according to a statement from the Korean Fair Trade Commission (KFTC) on Tuesday.
The newly unveiled service, named YouTube Premium Lite, will offer ad-free video streaming without access to the music streaming component. Priced significantly lower than the current YouTube Premium package, the subscription will cost 8,500 won (approximately $6.15) per month for Android users and 10,900 won for Apple users. The price difference reflects additional fees charged by Apple’s in-app payment system, per the statement from the KFTC.
On Tuesday, the regulator introduced a provisional consent decree requiring Google to implement these changes as part of its ongoing investigation into potential violations of Korea’s Monopoly Regulation and Fair Trade Act. The KFTC will accept feedback from stakeholders over the next 30 days, until August 14, before deciding whether to finalize the decree. If approved, Google must launch YouTube Premium Lite in the country within 90 days.
The antitrust body’s decision stems from concerns that Google’s existing bundling of YouTube Premium with YouTube Music, priced at 14,900 won, restricts consumer options unfairly. Per a statement from the KFTC, the creation of the Premium Lite tier, which focuses solely on ad-free video streaming, offers a more affordable alternative, reducing costs by roughly 57.1% for Android users and 55.9% for those on iOS.
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Kim Moon-sik, director general of the KFTC’s anti-monopoly investigation bureau, emphasized that “even after the launch of YouTube Premium Lite, the existing subscription products—YouTube Premium and YouTube Music Premium—will remain unchanged,” ensuring that users preferring the current bundles can maintain their subscriptions without disruption.
Google has also committed to keeping the prices of both YouTube Premium Lite and the existing YouTube Premium frozen for at least one year after the new plan’s introduction. This price freeze is part of a broader effort to address consumer concerns over rising subscription costs, a phenomenon often referred to as “streamflation,” according to the KFTC’s statement.
To encourage adoption of the new service, Google will provide a two-month free trial exclusively in Korea. This offer will be available to both new subscribers and existing YouTube Premium users who choose to switch to the Premium Lite plan. Furthermore, Google plans to collaborate with local telecom companies and retailers to offer discount packages, potentially benefiting up to 2.1 million consumers in South Korea, per estimates from the antitrust regulator.
The consent decree also includes commitments to support Korea’s domestic music industry. Google has pledged to invest 15 billion won over four years to nurture emerging Korean artists. This initiative will select up to 48 artist teams, with a minimum of eight receiving assistance for international promotion. Support will include training in songwriting and vocals, marketing efforts, and opportunities for overseas performances.
Source: The Investor
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- Conflicts
- north korea