The lobby of Google Korea headquarters in Seoul (Yonhap)
SEOUL, May 4 (Korea Bizwire) — Consumers are now being charged billions of won every year after streaming services decided to raise the prices of their subscription fees, ever since Google Inc. forced in-app purchases onto consumers, a lawmakers said Tuesday.
Independent Rep. Yang Jung-suk reported that some 12.55 million monthly active users subscribed to online music services like Melon, FLO, and Genie Music and video streaming services like Wavve and Tving have had to pay an additional 230 billion won (US$182 million) each year.
Yang came up with the estimate by applying a 14.7 percent raise on Melon and FLO’s standard subscription rate (10,900 won per month).
Wavve and Tving already raised their subscription fees by 14.7 percent on April 1, when paid via the Android app.
Other platforms like Melon, Genie Music, Wavve and Seezn are also expected to raise their subscription fees.
Google has asked all Android app developers to shut down all links that bring customers to external payment platforms by April 1, saying it will delete any app that fails to make these changes from June 1.
Consequently, all subscription-based Android apps will now have to pay Google a 15 percent commission, forcing them to raise their subscription prices.
“It is also likely that other content services will be raising their prices after June, which will result in higher charges for consumers,” Yang said.
H. M. Kang (hmkang@koreabizwire.com)
