Netflix Faces Backlash Over Price Hike... Domestic OTT Services See Upward Trend

67,000 Users Decrease in January
Three Consecutive Months of Decline After Fare Increase Announcement
Wavve, TVING, and Coupang Play Rebound

[Asia Economy Reporter Cha Min-young] Global online video service (OTT) Netflix has raised domestic subscription fees by up to 17,000 KRW, resulting in a sharp decline in users. Users leaving Netflix are reportedly moving to the three native OTT platforms: Wavve, TVING, and Coupang Play.

According to Mobile Index by big data platform company IGAWorks on the 8th, Netflix's monthly active users (MAU) in January stood at approximately 12.412 million, down about 67,000 from the previous month. Following the release of "Squid Game" in September last year, Netflix's MAU increased to 12.9 million in October. However, the number has been declining for three consecutive months since the announcement of the price hike.

The main reason for the decrease in Netflix users is the price increase. Since November last year, Netflix raised the Standard plan from 12,000 KRW to 13,500 KRW and the Premium plan from 14,500 KRW to 17,000 KRW for new subscribers, representing increases of 12.5% and 17.2%, respectively. In March, the price hike will also apply to existing subscribers, so the number of users leaving is expected to rise further.

Taking advantage of this, domestic OTT platforms are rebounding. Wavve's MAU jumped by 176,000 to approximately 4.92 million last month compared to the previous month. TVING increased by 18,000 to about 4.188 million, and Coupang Play rose by 88,000 to around 3.677 million. Investments in original works such as "Tracer" and "Those Who Read the Mind of Evil" (Wavve), "Work Later, Drink Now" and "Seoul Check-in" (TVING), and "SNL Korea" and "One Day" (Coupang Play) are also credited with driving viewership.

A Wavve representative said, "OTT platforms are where consumers move even within a single day," adding, "While industry trends have an impact, content competitiveness is the top priority, so we plan to continue increasing investment in original content."

This content was produced with the assistance of AI translation services.