YouTube Premium in 2025: How it Works

Summary: Discover how YouTube Premium generates revenue for creators through watch time metrics, revenue sharing, and new features that boost your channel.

If you've ever been five seconds into a video and got slapped with a loud ad about toothpaste, you’ve probably wondered: Is YouTube Premium worth it? Or better yet, how much is YouTube Premium now, and what are you getting for that price?

YouTube premium feature offers

With over 125 million members worldwide and some fresh updates rolled out in 2025, YouTube Premium is trying to be more than just "YouTube without ads." In this post, we’ll dig into what YouTube Premium is offering today, how it's evolving, and whether it deserves your monthly subscription.

What is YouTube Premium?

No ads, original content, and videos that play in the background: For video fanatics, this is just a small taste of what YouTube Premium offers to subscribers. Formerly known as YouTube Red, this rebranded service combines a variety of features for the perfect YouTube binge.

Here’s a complete list of all the exciting Premium features:

  • Ad-free viewing on YouTube
  • Ad-free viewing on YouTube Kids
  • Offline video viewing (download and watch later)
  • Offline music listening (download and listen later)
  • Background play (content plays outside app/when phone is closed)
  • YouTube Music Premium
  • YouTube Originals

These are great perks for viewers; however, creators will appreciate Premium for a different set of reasons. While the audience can expect fewer interruptions on the app, creators are getting what they’ve always wanted from the deal: more ways to increase their revenue on YouTube.

The service also lets creators get paid through your subscription, so you're still supporting the people you watch, even if you're skipping ads.

How Creators Earn More Money With YouTube Premium

And now for the big question: How does it all work? How are creators able to make more money on top of AdSense revenue with YouTube Premium?

In a nutshell, YouTube shares some of its Premium revenue with creators. Whatever the portion may be, the platform distributes this money to creators based on much Watch Time they earn from Premium subscribers.

So, for example, if one channel receives higher Watch Time than another, it gets a larger chunk of money. In the end, YouTube takes a 45% cut of a creator’s Premium earnings, just as it does for ad-generated revenue.

Nevertheless, earning some extra cash with Premium is something to aspire to. Every video on YouTube’s free platform is available on the paid version, so no matter what, your videos will contribute to your Premium Watch Time and earnings.

How Much Is YouTube Premium?

Let’s talk numbers. As of 2025, YouTube Premium offers several subscription options:

  • Individual Plan: $13.99/month (U.S.)
  • YouTube Premium Family: $22.99/month for up to 5 family members aged 13+ in the same household
  • YouTube Premium Student: $7.99/month (with annual verification)

You also get a one-month free trial, so there’s no harm in taking it for a test run.

YouTube Premium tiers

But here’s the twist: YouTube is now testing Premium Lite, a stripped-down version that offers ad-free viewing but no background play, no downloads, and no YouTube Music. It's cheaper, and for many users, that might be all they need.

Premium Lite is being piloted in the U.S. after earlier tests in Germany, Australia, and Thailand. The idea? Offer more flexible price points while still keeping the ad-free experience intact.

The New Premium Tiers: More Choice, Not More Confusion

YouTube Premium has evolved into a tiered service, tailored for different needs:

  • Basic Tier: Just ad-free creator content. No bells, no whistles.
  • Full Premium: The whole package—downloads, background play, and YouTube Music Premium.
  • Bundles: Special offers that tie Premium with Google One or family sharing perks.

This move makes sense. Not everyone needs the same features, and YouTube is trying to meet users where they are. Think of it like choosing your gym membership: some people want weights and cardio; others just want the pool.

YouTube Music Premium

Let’s not forget that YouTube Music Premium is bundled with the full version of YouTube Premium. It lets you:

  1. Stream music ad-free
  2. Download songs and playlists
  3. Use background play
  4. Access exclusive remixes and live performances
YouTube Music app

It's a solid offering if you’re already deep into the Google ecosystem. It may not have fully replaced Spotify for some, but it’s a nice bonus.

AI Is Here: Conversational Features and Playlist Creation

Here’s where things get interesting. In 2025, YouTube Premium is diving headfirst into artificial intelligence.

  1. Ask Music: This AI-powered tool lets you build playlists by just typing what you want, like "chill beats for rainy mornings" or "high-energy indie for working out."
  2. Conversational AI in the YouTube App: Watch a video and want more info? Ask the AI directly. It can answer questions about the video content in real-time, making the experience more interactive.

This isn’t just a gimmick—it’s a way to make your time on YouTube more efficient and intuitive. It's still early days, but the tech is promising.

YouTube Premium's Beta Lab: Try New Features First

Premium members can go to youtube.com/new to test experimental features before they’re released widely. Think of it like a sandbox for future tools.

youtube premium beta labs feature

One cool example is the 4x playback speed. For power users who binge tutorials or long commentary videos, that’s a time-saver.

User feedback on this platform directly shapes what YouTube rolls out next, making Premium members part of the development process.

YouTube Premium Family and Student Plans

You can also opt for specific plans according to users on your YouTube Premium account. Special categories of such plans are:

  • YouTube Premium Family is ideal if multiple people in your household use YouTube. Everyone gets their own Premium experience, which avoids algorithm chaos.
  • YouTube Premium Student is the best value. $7.99/month is hard to beat, and you still get full access, including YouTube Music.

Just remember that the student plan requires annual verification. So yes, you need to be an actual student.

YouTube Premium isn’t perfect, but it’s getting smarter and more flexible. Between the new AI tools, better tier options like Premium Lite, and a global expansion plan, the service is adapting in a way that makes sense.

If you use YouTube daily (and let’s be honest, most of us do), then yes—it might be worth it. Especially if you hate ads, want smarter features, or just enjoy seamless streaming.

While we are on the subject of viewer experience, check out this different way of watching videos on YouTube.

FAQs

How do creators make money from YouTube Premium?

Creators earn money based on the watch time their content gets from Premium subscribers. Their earnings depend on how long people watch, making every minute count.

How to Cancel YouTube Premium?

Decided it’s not for you? Canceling is easy: Go to youtube.com/paid_memberships Click "Manage Membership" Hit "Deactivate" or "Cancel" You keep your benefits until the billing cycle ends, so you can still squeeze in some last-minute offline downloads or AI playlist experiments.

Do all YouTube videos earn Premium revenue?

Yes, every video that is monetized can earn YouTube Premium revenue. The amount you earn depends on how much watch time Premium subscribers give your videos.

Can YouTube Shorts earn Premium revenue?

Yes, YouTube Shorts can contribute to Premium revenue. They use the same system based on watch time, even if the shorter length means less total time per view.

Is YouTube Premium revenue shown separately in Analytics?

Yes, YouTube Analytics keeps Premium revenue separate from ad revenue. This separation lets creators easily see how much they earn from Premium subscribers.