Alphabet Inc.'s Diverse Business Portfolio in South Korea

Google is proposing to launch YouTube Lite in South Korea, a lighter version of its video hosting and broadcasting site. The proposal is part of Alphabet Inc.'s efforts to expand its services globally. The company operates several businesses, including search engines, home automation solutions, biotechnology research, and investment services. Its net sales are distributed across the US, Americas, Europe/Middle East/Africa, and Asia/Pacific regions.

Google is proposing the launch of YouTube Lite in South Korea, a lighter version of its video hosting and broadcasting site, as part of Alphabet Inc.'s global expansion efforts. This initiative comes in response to antitrust concerns raised by the country's competition regulator, the Fair Trade Commission (FTC).

The FTC has expressed concerns about Google's current bundling of YouTube Premium with YouTube Music, which it believes unfairly limits consumer choice. To address these concerns, Google has agreed to create YouTube Premium Lite, a new subscription offering that provides ad-free video streaming without the music streaming service. The monthly fees for YouTube Premium Lite are set at 8,500 won ($6.15) for Android users and 10,900 won for Apple customers, reflecting the fees imposed by Apple's in-app payment system [1].

The proposed YouTube Premium Lite will cost about 57.1 percent less on Android and 55.9 percent less on iOS compared to the full YouTube Premium plan. This new offering aims to provide consumers with a more affordable option for ad-free video streaming. Google has also committed to freezing the prices of both YouTube Premium Lite and YouTube Premium for at least one year after launch, a move aimed at alleviating concerns about rising subscription fees across digital platforms [1].

In addition to the price freeze, Google plans to offer a two-month free trial to both new subscribers and existing Premium users who switch to the Premium Lite plan. This promotional offer will be exclusive to South Korea, making it the first such initiative globally. Furthermore, Google will introduce discount plans in partnership with local telecom providers and retailers, which are expected to benefit up to 2.1 million Korean consumers [1].

The consent decree also includes provisions for fostering the domestic content ecosystem. Google has pledged to invest 15 billion won over four years to support emerging Korean artists, selecting up to 48 teams, with at least eight to receive support for global expansion. Chosen artists will benefit from training in composition and vocals, promotional support, and overseas performance opportunities [1].

This case marks one of the first applications of the consent decree process to a global tech platform in Korea. Addressing criticism that the measure may serve as a "free pass" for Google, the FTC emphasized that the consent decree allows for faster and more effective enforcement than traditional legal proceedings, which can take four to five years [1].

Google's proposal to launch YouTube Lite in South Korea is part of its broader strategy to expand its services globally while addressing antitrust concerns. The company operates several businesses, including search engines, home automation solutions, biotechnology research, and investment services. Its net sales are distributed across the US, Americas, Europe/Middle East/Africa, and Asia/Pacific regions [3].

References:
[1] https://www.koreaherald.com/article/10532099
[2] https://www.ainvest.com/news/google-agrees-cloud-services-prices-government-partnership-2507/
[3] https://www.ainvest.com/news/alphabet-class-ai-innovations-stock-prospects-2507-51/