What Is YouTube Premium and What Does It Mean for My Business?

With billions of monthly worldwide users, YouTube is one of the most popular social media platforms in the world. Not only is YouTube entertaining, but it’s also one of the top search engines, after Google. People use YouTube to find recipes, tackle DIY projects, engage in workout videos, and more. 

YouTube is the king of video content, and with the launch of YouTube Premium in 2014, users have even more ways to engage with and enjoy the biggest video streaming service. 

If your business is looking to reach your target audience with video content, YouTube is one of the best platforms for distribution. So what does YouTube Premium mean for your video content strategy?

YouTube Premium is the upgraded, paid version of the standard YouTube platform. Standard YouTube is free for users, thanks to the ads before, during, and after videos, but users can pay to upgrade to YouTube Premium. 

With YouTube Premium, paid subscribers can enjoy additional features such as no ads, the ability to play videos in the background while accessing other mobile apps, and offline downloads.

YouTube Premium is different from YouTube TV. YouTube TV is a streaming television service that includes traditional live broadcasts and cable TV channels. Currently, you can’t bundle the two services together.

YouTube Premium starts at $13.99 per month, and users can cancel at any time. [1] However, there are ways to save money on a YouTube premium subscription with different annual, family, or student plans.

Annual: If users commit to 12 months of YouTube Premium for $139.99, it brings the monthly cost down to $11.66.

Family: For $22.99 per month, you can add up to five family members over the age of 13 in your household.

Student: For $7.99 per month, eligible students can enjoy YouTube Premium at a cheaper rate once they verify their status as a student.

If you’re wondering why you might want to upgrade to YouTube Premium, here are the different perks and features it gives you.

• No ads: YouTube premium users can still see sponsored content in videos if a contact creator has a brand partnership, but they will not see pre-roll or post-roll ads.

• Background play: One of the most popular features of YouTube Premium is the ability to continue playing videos in the background while your phone screen is locked. Users of YouTube Premium can also play videos while using other apps.

• Downloads: With YouTube Premium, you can also download videos to your phone to watch without an internet connection, such as during a flight.

So what does YouTube Premium mean for businesses and content creators?

Seventy-one percent of surveyed small-business owners with a YouTube channel report that YouTube helped them grow their business revenue. [2]

Millions of small businesses worldwide use YouTube, and many choose to actively advertise on the platform. If you advertise on YouTube, you might be worried that YouTube Premium is diluting your reach. Unfortunately, this is somewhat true, as YouTube premium users will not see your ads.

However, with only 80 million users subscribing to paid YouTube Premium, there are still billions of people using the standard YouTube platform and, therefore, watching ads. A vast portion of your target audience will still see your business's ads.

Content creators on YouTube are still eligible to put sponsored content into any video they create and publish. For example, a brand like Home Depot might pay to be featured as the shopping destination of choice in an influencer’s kitchen upgrade video. Also, YouTube shares a percentage of the YouTube Premium subscription fee with creators. [3]

YouTube advertising and content creation can be a key piece of your overall marketing strategy. If you are looking to reach your target audience with video content, YouTube is one of the best platforms for distribution. Thanks to its smart search engine algorithm, even with a small audience, your videos have the potential to rank highly.

Ninety-one percent of consumers want to see more online video content from brands, so even short videos can find their home on the YouTube platform. Also, videos impact purchasing decisions: 89% of people say a video has convinced them to buy a product or service. [4] Whether your goal is awareness, sales, or engagement, YouTube videos can highly impact your audience.

For small and midsize businesses, email marketing, social media marketing, PR, paid ads, and more should all create a holistic marketing strategy. All of these platforms work together to generate leads, sales, and revenue for your business.