YouTube is shifting towards a more diversified monetization model in India, with the introduction of its Premium Lite plan. Launched in September 2025, the plan caters to the rising demand for connected TV content while addressing the need for low-cost digital services in India.
Key Developments
YouTube’s Premium Lite plan, priced at INR 89 per month, aims to offer a flexible solution for ad-free viewing across most content categories. However, ads will still appear on Shorts, music videos, and searches. The plan does not support background playback or offline downloads.
- Connected TV Growth: With connected TVs being the fastest-growing screen for YouTube in India, this expansion caters to the increasing demand for long-form content, with over 75 million viewers aged 18 and above already engaging with YouTube on these devices.
- Ad-Supported Model: YouTube is shifting towards a hybrid ad-supported and subscription model, catering to the growing number of users who prefer paying for an ad-free experience without losing the opportunity to view free content.
- Diversified Monetization: This strategy aims to convert free users to paid subscribers while exploring new revenue streams for creators with additional formats and monetization tools.
Industry & Expert Context
The rise of connected TVs is transforming India’s digital content consumption, with YouTube playing a pivotal role. As large-screen viewing grows, YouTube’s shift toward paid subscription models comes in response to a young, digitally-savvy audience that is increasingly willing to pay for high-quality content.
Industry analysts, including Digilogy, note that India’s market for affordable digital services is expanding, making YouTube’s Premium Lite offering well-suited to local preferences. The expansion not only caters to the increasing number of connected TV users but also introduces new revenue streams for content creators.
- Content Format Diversification: YouTube’s strategy integrates long-form videos, Shorts, music, livestreams, and podcasts, creating a broad content ecosystem. Shorts alone now average about 200 billion daily views globally.
- Creator-Focused Tools: YouTube’s commitment to providing more tools for creators reinforces its position as a dominant player in the streaming space.
Why This Matters
YouTube’s move to expand ad-supported streaming with Premium Lite is significant for both users and businesses in India. For users, it presents an affordable option to access ad-free content across multiple categories while maintaining access to free videos. For businesses, it opens up new avenues for advertising and content monetization.
- For Users: The Premium Lite plan offers users an affordable way to enjoy ad-free content across most categories, with the flexibility of low-cost digital services.
- For Businesses: YouTube’s evolving business model presents new opportunities for digital marketers to reach engaged users through paid subscriptions, pay-per-view models, and fan-funded initiatives.
What Happens Next
The success of the Premium Lite plan will depend on how well YouTube can cater to the price-sensitive market in India, balancing affordable pricing with the need to generate revenue. As connected TV usage continues to rise, YouTube is likely to expand its premium offerings further to capture more of the growing audience.
- Future Expansion: Expect more localized versions of YouTube’s premium offerings to suit various market segments in India. As connected TV adoption accelerates, subscription models like Premium Lite will likely evolve.
- Monetization Shift: The shift to paid subscriptions alongside ad-supported models will continue to evolve. YouTube’s ability to adapt to changing consumer behavior will play a key role in maintaining its leadership in India’s digital content market.
Final Takeaway
YouTube’s launch of Premium Lite in India marks a pivotal moment in its strategy to diversify monetization through subscriptions, ads, and creator tools. The platform’s expansion reflects the growing shift towards premium, ad-free content options in India, driven by the increasing adoption of connected TVs. As YouTube refines its offerings, businesses and digital marketers should keep an eye on these developments. Digilogy continues to track these industry shifts, helping businesses navigate the evolving digital landscape.
