Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Netflix under fire for rate hike as rivals freeze fees
A scene from Netflix's hit cooking survival show "Culinary Class Wars" / Courtesy of Netflix
By Lee Gyu-lee
Netflix has come under criticism for its excessive rate hike of 27.3 percent here, while rival streaming platforms have opted to freeze their respective subscription fees.
The streaming giant announced Friday that it is raising prices for its Standard with Ads and Basic plan, marking its second price hike after increasing the Standard and Premium plans in 2021.
The ad-supported plan, which was previously 5,500 won ($3.93), is now 7,000 won per month, representing an increase of about 27 percent. Meanwhile, the Basic plan has increased by 26 percent, from 9,500 won to 12,000 won. As the Basic plan has been discontinued for new subscribers, the change only applies to existing users who have maintained the plan.
The new price took effect for new members on the day, while existing members will see the new prices reflected in their next subscription bill.
The Standard and Premium plans will remain at their current prices, along with the Naver Plus membership, which includes access to Netflix's ad-supported plan for 4,900 won per month.
The price increase in Korea marks the third highest among the countries where Netflix has raised prices this year, following Argentina and Canada.
Netflix raised subscription prices in several countries, including the United States, Canada and Argentina, in January of this year.
Argentina was hit hardest with a 39-percent rate hike by Netflix, followed by 33.4 percent in Canada.
The Netflix logo is seen at the Netflix Tudum Theater in Los Angeles, on Sept. 14, 2022. AFP-Yonhap
"We occasionally adjust our plans to provide a variety of quality entertainment experiences. This leads to re-investing to deliver better value," Netflix said.
However, Netflix's abrupt announcement to increase prices for its ad-supported plan in Korea has stirred criticism from local users, with some questioning whether the streaming giant is burdening consumers with its high production costs.
“They are already making money by running ads, right? Then why are they asking the people watching ads to pay more?” a user wrote online.
The move comes in contrast to the local streaming service Coupang Play's new strategy to offer its ad-supported plan for free.
Coupang Play announced Friday that it will be making its content available to watch with ads for all of Coupang members. The streaming platform was previously only accessible to those with WOW membership, which includes benefits for both Coupang and the streaming subscription.
“We will continue to break away from traditional models and drive innovation so that our customers can enjoy diverse and high-quality content in the most reasonable way possible,” the streaming service said.