Content Prices Rise Due to Apple Price Increase

Price Increase for In-App Purchases in Korea and Japan
Price Hikes for Paid Apps and Content Unavoidable

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[Asia Economy Reporter Yuri Choi] Apple has raised the local payment currency prices on the App Store without prior notice, causing users to bear the brunt of the increase. Although the adjustment appears to reflect the strong dollar, Apple's price hike rate exceeds the exchange rate increase, resulting in Korean consumers paying more in won for the same content.

According to the IT industry on the 21st, Apple announced that starting from the 5th of next month, it will raise the payment currency prices in the App Store for South Korea, Japan, and other countries with paid services. The price will increase from 1,200 won to 1,500 won per $0.99. Considering that App Store vendors can only set app and content prices according to Apple's suggested price list, the effective increase is even greater. Apple has divided the price list into 87 tiers based on $0.99 increments; for example, Tier 1 at $0.99 will rise from 1,200 won to 1,500 won, and Tier 2 at $1.99 will increase from 2,500 won to 3,000 won.

Apple has not clearly explained the reason for this price increase. The industry views the strong dollar as the background for the hike. Apple has historically adjusted App Store prices by country based on market conditions such as exchange rates and taxes. An industry insider said, "Since Apple prices are set based on the dollar, it seems to reflect the strength of the dollar." However, even considering the exchange rate increase, Apple's price hike rate is higher. The current won-dollar exchange rate fluctuates around 1,390 won, making the new prices over 100 won more expensive.

As a result, prices for paid apps and content in South Korea are expected to rise significantly. For example, if an iPhone user currently purchases 'Cookies' to view paid content on Naver Webtoon, they pay 1,200 won for 10 cookies and 5,900 won for 49 cookies. After the increase, these prices will rise to 1,500 won and 7,500 won, respectively. Naver Webtoon is discussing adjusting the number of cookies to maintain a price of about 120 won per cookie despite the Apple payment price increase.

Apple's policy is also likely to impact Google Play app prices. If the price gap between iOS and Android users widens, developers may raise Android prices to eliminate the disparity. In June, Google mandated in-app payments and increased commission rates from 15% up to 30%. Consequently, prices for online video service (OTT) subscriptions, music streaming fees, and webtoon prices rose by about 15-20%. At that time, Google only raised commission rates without reflecting exchange rate changes in payment currencies, raising concerns that another round of content price increases from Google may soon follow.

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