YouTube Music surpasses 125 million paid subscribers, expands Premium Lite offering

The new figures indicate that YouTube has added over 25 million subscribers in the past 12 months, an average of slightly more than 2 million per month, since its last reported figure of 100 million in February 2024.

Comparison with Spotify

With this growth, YouTube Music continues to position itself as a key competitor in the music streaming industry. However, its subscriber base remains significantly smaller than that of Spotify, the world’s largest subscription music streaming platform.

Spotify reported an increase of 27 million net paying subscribers in the 12 months leading up to December 2024, bringing its total to 263 million paid users.

In his letter, Cohen described the milestone as an “incredible achievement that many dismissed as impossible when we first launched.” He reiterated YouTube’s commitment to becoming the music industry’s leading revenue contributor, writing, “we won’t stop until we get there.”

He also emphasised YouTube’s continued investment in visual storytelling and artificial intelligence, predicting a resurgence of the music video format.

“As I look forward, I’m foreseeing a renaissance of the music video. It’s not about having the biggest production budget; it’s about sharing authentic hero content that music fans can’t unsee,” he wrote.

Expansion of Premium Lite

Cohen also highlighted YouTube’s efforts to drive subscription growth by expanding its Premium Lite pilot to users in the US.

Premium Lite is a lower-cost subscription tier that allows users to watch most videos ad-free, although ads remain on music content, Shorts, and during searches. The service is priced at $7.99 per month, compared to the full YouTube Premium subscription, which costs $13.99 per month for an individual plan in the US. A standalone YouTube Music Premium plan is priced at $10.99 per month.

Cohen said early data from the Premium Lite pilot indicated that “more Lite members upgraded to YouTube Premium than Premium members downgraded to Premium Lite,” suggesting a positive impact on overall subscription growth.

AI integration and future prospects

YouTube is also focusing on integrating artificial intelligence to enhance content creation. Cohen mentioned the platform’s investment in AI tools, including Dream Screen, a feature that allows Shorts users to generate AI-powered video backgrounds using text prompts. This tool is now powered by Veo 2, Google DeepMind’s latest generative video model.

“With this new integration, artists and fans can create standalone video clips for their Shorts, broadening the horizons to tell visual stories with music,” Cohen said.

He also cited Nielsen rankings, which indicate that YouTube has been the number one streaming platform in the US in terms of watch time for two consecutive years. Over one billion hours of content are viewed daily on television screens in the US alone.

Live streaming growth and the future of YouTube Music

Cohen noted that more than 50% of YouTube’s live stream viewership of Coachella 2024 came from connected TVs. He suggested that the trend of artists delivering premium content directly to large screens—whether through music videos or live performances—will continue to grow.

Looking ahead, Cohen expressed confidence in YouTube’s future: “I know there’s uncertainty in the world and in our industry, but in my nine years at YouTube and 40 years in the business, I’ve learned that uncertainty and challenges signal great opportunity. I cannot wait to see what the next 20 years of YouTube holds.”

YouTube’s continued growth in music subscriptions, alongside its advancements in AI and live streaming, underscores its evolving role within the music industry. As competition with Spotify and other streaming services intensifies, YouTube’s strategic focus on video content, AI-driven innovation, and flexible subscription offerings may further strengthen its position in the market.