YouTube is testing a cheaper version of its premium subscription, focused purely on ad-free viewing.
As The Verge reports, the cheaper option is called "Premium Lite," and YouTube is currently testing it as an option across Europe in Belgium, Denmark, Finland, Luxembourg, the Netherlands, Norway, and Sweden. YouTube Premium offers ad-free and background play, the ability to download videos, and access to YouTube Music Premium. It costs $11.99 in the US and 11.99 euros in Europe.
YouTube Premium Lite is significantly cheaper at 6.99 euros, which will most likely be $6.99 in the US. For that, you get ad-free videos on YouTube across the web, Android, iOS, games consoles, and smart TVs. All the other premium features are dropped, but you are saving 4 euros/dollars per month. The question for YouTube is whether that price for simply removing ads is low enough to entice people to subscribe?
If Premium Lite does prove popular, it suggests YouTube viewers aren't that interested in downloading videos, background play, or the inclusion of access to music streaming. On the other hand, it could just mean $11.99 isn't a price YouTube users are willing to pay.