YouTube Premium, which offers ad-free video streaming, has also raised its subscription fee in South Korea from 10,450 won to 14,900 won, marking a 43 percent increase. (Image courtesy of Yonhap)
SEOUL, Dec. 14 (Korea Bizwire) – In South Korea, the rising trend of subscribing to multiple Over-The-Top (OTT) and online streaming services, such as Netflix, YouTube, Disney Plus, and Tving, is facing a new challenge: a series of price hikes that are increasing stress among subscribers.
Recently, Netflix, already under scrutiny for banning account sharing among individuals not living in the same household, halted new subscriptions and renewals to its cheapest ad-free Basic plan. Consequently, to access content without ads, new Netflix subscribers now have to opt for a minimum plan costing 13,500 won per month, effectively a 4,000 won increase in subscription fees.
YouTube Premium, which offers ad-free video streaming, has also raised its subscription fee in South Korea from 10,450 won to 14,900 won, marking a 43 percent increase. Despite a statement from YouTube that the decision followed careful deliberation and a three-year price freeze, this substantial hike has sparked significant backlash from consumers. The criticism points out that, unlike other streaming platforms offering original content, YouTube serves primarily as a platform for creators, making a 40 percent increase seem excessive.
Furthermore, YouTube’s usage in South Korea is notably high, with an average monthly usage time of 104.4 billion minutes, surpassing KakaoTalk by three times and Naver by over four times. As YouTube Premium fees become a near-fixed expense for many, the impact of this price increase is expected to be substantial.
Another issue stirring controversy is the perceived subscription fee discrimination against Korean users. Compared to countries like India, where the monthly fee for YouTube Premium ranges between 2,000 to 3,000 won, and even Argentina, where the recent hike set the maximum subscription cost at around 6,000 won, South Korea’s fees are significantly higher. Additionally, family plans, allowing up to five family members living in the same household to share a subscription, are available in 42 countries but not in South Korea.
In response to these price hikes, some subscribers are resorting to ‘digital migration’ – signing up for services via VPNs in countries with lower subscription fees. While not illegal, this method contravenes user agreements and can lead to accounts being suspended.
Experts agree that considering the national income level, South Korea’s streaming service fees are excessively high. They argue that providers need to set more reasonable rates and criticize the exploitation of consumers’ lack of choice, leading to arbitrary price control.
Kevin Lee (kevinlee@koreabizwire.com)
