Google is reportedly considering launching a version of YouTube Premium that excludes YouTube Music in South Korea, according to a report by Korea JoongAng Daily. 

The move comes amid ongoing negotiations with South Korea’s Fair Trade Commission (FTC), which has been investigating Google for potentially anti-competitive bundling practices.

The FTC sent Google Korea what amounted to an indictment in July, arguing that bundling YouTube Music with YouTube Premium violates fair trade laws. Instead of continuing a regulatory battle, Google has reportedly proposed corrective measures through a “consent decision” process, which allows the FTC to suspend its review if the company voluntarily offers remedies.

Premium Lite Solution Proposed

To address regulatory concerns, Korea JoongAng Daily notes that Google could introduce a YouTube Premium Lite plan in South Korea, a lower-cost subscription that offers ad-free YouTube viewing but excludes YouTube Music.

Korean subscribers currently pay 14,900 won ($10) monthly for YouTube Premium, while YouTube Music as a standalone service costs 11,990 won ($8.38) per month. 

According to the Korea Creative Content Agency’s 2024 Music User Survey, many Korean users access YouTube Music through bundled benefits from YouTube Premium, with relatively low interest in subscribing to music-only streaming services.

Similar Offering Expanding Globally

Last month, YouTube announced the expansion of its Premium Lite pilot to users in the U.S. The Premium Lite subscription costs $7.99 per month, lower than the $13.99 full YouTube Premium subscription. YouTube’s Global Head of Music, Lyor Cohen, described the Premium Lite expansion as further “feeding YouTube’s subscriptions funnel.”

Increasing Regulatory Focus

As per a Music Business Worldwide report, the case highlights South Korea’s intensifying focus on regulating tech platforms. Last month, the FTC fined Kakao Entertainment 390 million won ($272,600) for misleading advertising practices in music streaming.

In August last year, the FTC sent examination reports to five major OTT and music streaming platforms, including Netflix’s Korean affiliate and Spotify Korea, alleging failures to provide users with subscription termination options mid-billing cycle or to inform consumers of their refund rights.