YouTube has surpassed 125 million paid subscribers across its Premium and Music Premium offerings, according to parent company Alphabet’s Q1 2025 earnings report. The milestone reflects a 25 million year-on-year increase and underscores the growing importance of subscription models in the platform’s global strategy — a development with significant implications for the music industry.
Speaking on the company’s earnings call, Alphabet and Google CEO Sundar Pichai confirmed that the tech giant now counts 270 million paying subscribers across its suite of consumer services, led by YouTube and Google One. This growth trajectory is especially notable as YouTube continues to position itself not only as a dominant video platform but as a major player in music streaming.
“Subscriptions are now a big part of the business,” Pichai said, also revealing that Premium Lite, a lower-priced tier offering ad-free viewing on most YouTube videos, has now been introduced in the U.S. at $7.99/month. While this option excludes full music access and retains ads on Shorts and music content, it presents a strategic move to onboard more users into YouTube’s ecosystem.
YouTube Music’s Growing Influence
From a music business lens — particularly in a market like India where ad-supported streaming still dominates — YouTube’s push towards paid subscriptions is noteworthy. With YouTube Music Premium priced at $10.99/month, the platform continues to build its case as a hybrid video-music streaming service, leveraging its extensive music catalog, artist content, and Shorts to keep users engaged.
Globally, YouTube’s influence in shaping music discovery, fan engagement, and revenue monetization continues to grow. In India, where YouTube remains one of the most widely used digital platforms for music consumption, its evolving subscription strategy could create new opportunities — and challenges — for labels, independent artists, and DSPs alike.
Alphabet’s Financial Performance
Alphabet reported $90.2 billion in revenue for the quarter ending March 31, up 12% year-over-year (or 14% in constant currency). Net income jumped 46% to $34.5 billion, translating to $2.81 in earnings per share, which significantly exceeded analyst expectations of $2.01.
While Alphabet’s advertising business remains strong, the shift toward recurring revenue through subscriptions signals a broader strategic pivot — one that could reshape how digital platforms generate and share value with creators and the music ecosystem.
The company did, however, flag potential challenges to its ads business in 2025, particularly from Asia-Pacific markets. Changes to U.S. import policies — including the removal of the de minimis exemption for Chinese goods — could impact ad spending by major e-commerce players like Shein and Temu, both of whom have been aggressive digital advertisers.
According to Google’s Chief Business Officer Philipp Schindler, this may pose “a slight headwind” to YouTube’s ad revenue next year.
As YouTube refines its subscription model globally, Indian music stakeholders — from labels to indie artists — may want to watch closely. The platform’s monetization mix is evolving, and with over half a billion internet users in India, how YouTube Music converts free users to paid ones could influence streaming economics across the region.
