The ad-removal product "YouTube Premium Lite" will be officially launched in Korea. The key is that background play and offline downloads, which are not available overseas, will be offered only in Korea.
On the 27th, the Fair Trade Commission said it finalized a consent decision related to Google's alleged violations of the Monopoly Regulation and Fair Trade Act. A consent decision is a system under which, if a company under investigation and review proposes corrective measures and wins recognition from the commission, the case is closed without determining whether the law was violated.
The commission has been reviewing the case on the view that Google limited consumer choice by selling only the bundled "YouTube Premium" for video and music and a standalone music product. Google applied for a consent decision in May, and the commission drafted a provisional plan and gathered opinions before finalizing the plan after enhancing features and adjusting support measures.
The Lite price is set at 8,500 won on Android and the web, and 10,900 won on Apple's iOS. That is 57.1% and 55.9% of the existing YouTube Premium (14,900 won and 19,500 won). For one year after launch, neither the Lite nor Premium rates can be raised.
An official at the commission said, "Even compared with the 19 countries where Lite is already sold, including the United States, the United Kingdom, Canada, Japan and Brazil, Korea has the lowest Lite-to-Premium price ratio."
Lite sold in 19 countries overseas provides only ad removal, but the Korea version will add background play and offline downloads. Most non-music content can be watched and saved without ads, and playback continues with the screen off. However, for some non-music content where music rights holders have separate rights, these features are limited. Google said, "If rights issues are resolved overseas, we will apply it to Korea first."
Google must launch Lite within 90 days after delivery of the decision, and plans to expand it to all users after a 4–6 week pilot for some users. An official at the commission projected, "It will be possible to launch within the year."
Google must create a 30 billion won mutual growth fund. In the provisional plan, promotional benefits such as free trials for Lite subscribers and discounts for resellers were included, but during the comment process, concerns were raised that they might be used to boost sales, and the entire fund was adjusted to focus on supporting the domestic music industry. The operator also changed from Google to EBS. An official at the commission said this was "a decision to secure the public interest and transparency of the fund."
The mutual growth fund will be used to resume free concerts of EBS "Space Empathy," which had been halted. About 80 concerts a year and the production of around 40 videos will resume. The suspended rookie discovery program "Hello Rookie" will also be revived. Each year, about 10 rookie teams will be selected to receive performance, promotion and development programs. An official at the commission said, "In a consumption environment centered on YouTube, this will lay the groundwork to supplement the domestic music ecosystem."
The commission's position is that this consent decision is a measure to move up the launch of a new product and restore competition in the subscription market. An official at the commission said, "In tying cases, conditions must be coordinated with corporations, so a consent decision is more effective than sanctions," adding, "If we went through sanction procedures, it would take years until product launch."