Starting Next Month, OTT Fees Increase Up to 4,000 Won... Fees Remain Unchanged If Google App Is Not Used

[Asia Economy Reporter Lim Hye-seon] Starting next month, online video service (OTT) fees will increase by up to 4,000 KRW. This measure is taken by content providers to alleviate the commission burden as Google will only allow in-app payments and third-party payments within in-app payments from next month. Following Netflix, major domestic OTT providers have joined the fee hike trend, increasing the burden on consumers.

According to the media industry on the 25th, Wavve recently announced that it will raise subscription prices within its Android app due to Google's mandatory in-app payment policy. Prices for Basic, Standard, and Premium plans will be adjusted from the previous 7,900 KRW, 10,900 KRW, and 13,900 KRW to 9,300 KRW, 12,900 KRW, and 16,500 KRW, respectively. The increase ranges from 1,400 to 2,600 KRW, which is about 15%, similar to Google's in-app payment commission rate.

This increased fee applies when payment is made through the Android app. Customers paying via PC or mobile web will see no change in the existing fees.

Tving will also raise its Android in-app payment fees. Prices for Basic, Standard, and Premium plans will increase from 7,900 KRW, 10,900 KRW, and 13,900 KRW to 9,000 KRW, 12,500 KRW, and 16,000 KRW, respectively. Tving plans to lower in-app payment fees for Apple iOS. Prices for Basic, Standard, and Premium plans, previously 12,000 KRW, 16,000 KRW, and 20,000 KRW, will be reduced to 9,000 KRW, 12,500 KRW, and 16,000 KRW, respectively.

Watcha, which has applied in-app payments from the beginning, stated that it has no plans to raise fees.

The reason OTT providers decided to raise fees lies in Google's policy change. Google previously announced that, according to Google Play payment policies, app developers will only be allowed to use Google Play in-app payments or third-party payments within in-app payments. Google stated that if this policy is not followed, app updates will be blocked from April, and from June, the app will be removed from Google Play entirely. Consequently, OTT providers must pay Google a 15% commission on subscription services when using Google in-app payments.

The Korea Communications Commission recently informed Google to improve the app market operation method, citing potential illegality in restricting payments. The commission plans to complete a legal interpretation next week and investigate any illegal acts. After Google claimed compliance with the ‘In-App Payment Mandatory Prohibition Act’ (an amendment to the Telecommunications Business Act) implemented on the 15th, and devised a workaround to induce in-app payments, the commission intends to clearly examine the possibility of legal violations. In-app payment refers to a method where paid content is purchased only through internal payment systems developed by Google, Apple, etc. The In-App Payment Mandatory Prohibition Act prohibits app markets from forcing in-app payments.

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