YouTube tests shared Premium plan for two users at Rs 219 per month: Report

YouTube tests shared Premium plan for two users at Rs 219 per month: Report

  • 6 hours ago
  • business-standard.com
  • Keywords: AI, Startup

YouTube is testing a shared Premium plan for two users at Rs 219 per month in India and other countries. The pilot program allows selected users to share the subscription, priced lower than the existing five-user family plan at Rs 299. YouTube aims to boost subscription revenue by offering flexible plans beyond its traditional ad-based model.

Alphabet Reports
open_in_newOriginal article

Estimated market influence

YouTube

Positivesentiment_satisfied
Analyst rating: N/A

YouTube is introducing a new subscription plan for two users at Rs 219 per month, which could potentially increase their revenue and market share.

Google

Positivesentiment_satisfied
Analyst rating: N/A

As the parent company of YouTube, Google benefits from YouTube's expansion into new subscription models.

Context

Analysis of YouTube's Shared Premium Plan

Key Facts and Data Points

  • Two-user YouTube Premium plan:

    • Priced at Rs 219 per month in India (pilot phase).
    • Benefits: Ad-free experience, access to YouTube Premium and Music Premium.

  • Existing Family Plan:

    • Supports up to five users.
    • Priced at Rs 299 per month.

  • Two-user Music Premium plan:

    • Priced at Rs 149 per month (pilot phase).

  • Subscription Price Hike in India:

    • Prices increased by 12 to 58% across plans in August 2024.

Market Trends and Business Impact

  • YouTube is shifting focus from ad-reliance to subscription-based revenue growth.
  • The introduction of shared plans reflects a strategic move to attract more users while maintaining affordability.
  • This pilot aligns with global trends where streaming services are experimenting with flexible pricing models (e.g., Spotify, Netflix).

Competitive Dynamics

  • Competitors like Spotify and Netflix already offer family plans, making this move by YouTube a competitive response.
  • The two-person plan at Rs 219 positions YouTube to compete effectively in price-sensitive markets like India.

Strategic Considerations

  • Target Audience: Focus on younger users (age 13+) and students, as indicated by the student plan (Rs 89/month).
  • Pricing Strategy: Offering a mid-tier option (two-person plan) could cannibalize family plan sales unless properly managed.

Long-term Effects and Regulatory Implications

  • Potential for increased subscription revenue in India and other pilot markets.
  • Risk of user migration from premium to shared plans, affecting overall ARPU (Average Revenue Per User).
  • No immediate regulatory hurdles noted, but data privacy concerns may arise with shared accounts.