Google Considers YouTube Premium Changes
Google is contemplating the launch of a YouTube Premium version in South Korea that would not include YouTube Music.
This potential move, reported by Korea Joongang Daily on Tuesday (April 15), occurs amidst ongoing negotiations with the South Korea Fair Trade Commission (FTC), which has investigated Google for potentially anti-competitive bundling practices.
Last year, the FTC began probing major international platforms, including Google, Meta from the USA, and AliExpress and Theme from China for potential unfair business practices.
Regulatory Scrutiny and Proposals
At that time, Yungung reported that regulatory authorities were examining whether music services should be independently regulated due to their increasing influence.
“The FTC is considering the impact of music streaming services,” Yungung reported last year.
Later, the FTC sent an indictment to Google Korea in July, alleging that its bundling of YouTube Music with YouTube Premium violated fair trade laws.
Instead of continuing the regulatory conflict, Google reportedly suggested corrective measures during a “decision-making” process, which allows the FTC to suspend its review if the company voluntarily offers legal safeguards for consumers.
According to reports, the FTC is convinced that Google has exploited the YouTube market by linking YouTube Music with its premium subscriptions.
To address this issue, Google is considering a YouTube Premium Lite plan in South Korea, which offers a cheaper subscription that allows ad-free viewing on YouTube but excludes music, as reported by Yungung.
Last month, YouTube announced that it was extending its Premium Lite pilot program for users in the USA. The Premium Lite subscription will be priced at $7.99 per month, significantly lower than the $13.99 full YouTube Premium subscription in the USA, while the standalone music service costs $10.99 per month.
YouTube’s global music leader, Lior Coen, remarked last month that the extension of Premium Lite is part of an initiative to enhance user engagement with YouTube.
Korean subscribers currently pay 14,900 won ($10) per month for YouTube Premium, while the standalone YouTube Music service is priced at 11,990 won ($8.38) per month.
“Many users access music on YouTube through bundled benefits of YouTube Premium,” Yungung quoted the Korean Content Agency’s (KOCCA) 2024 Music User Survey.
“Interest in subscription services for music streaming is relatively low,” the KOCCA report added.
This case highlights the increasing regulatory focus in South Korea on tech platforms. Last month, the FTC imposed a fine of 390 million won ($272,600) on Kakao Entertainment for misleading advertising practices in music streaming.
In August of last year, the FTC issued reports concerning the five major OTT platforms and streaming music services, claiming they had not adequately informed users about their rights to cancel subscriptions mid-term or about their compensation rights.
These companies include Netflix’s Korean branch and Spotify Korea, along with local streaming video platforms Wavve and WATCHA INC., as well as music streaming platform NHN Bugs Corp.
The challenges Google faces in South Korea echo similar issues Spotify has encountered in the USA regarding its own bundling practices. Last May, Spotify filed a lawsuit against the Mechanical Licensing Collective (MLC), alleging that they underpaid royalties to songwriters and publishers by bundling their services.
This conflict arose from Spotify’s decision to label premium subscription levels as “packages” in March 2024, which included 15 hours of audiobook access each month, raising concerns due to Spotify’s lower mechanical royalty payments to songwriters and publishers in the United States.
Spotify won this lawsuit in January when the court granted its request to dismiss the case “with prejudice.” The MLC subsequently sought a revision of the dismissal in February.
Google may unbundle YouTube Music from Premium in South Korea amid regulatory pressure (report)
