"Netflix Alone Is Not Enough"... Do You Know 'Netchya' and 'Weplix'?

OTT 'Multi-Subscription' Era
Increase in Multiple Subscriptions like Netflix＋Watcha, Wavve·Tving＋Netflix

Image source=Getty Images Bank [Graphic by Lee Young-woo]

[Asia Economy Reporter Kim Heungsoon] "Variety shows on Wavve, foreign dramas on Watcha, cable on TVING…."

Choi Sungwon (34), a global online video service (OTT) Netflix subscriber, recently sought advice on appropriate domestic services from an online community before subscribing to an additional OTT. He received recommendations like these. Those who already subscribe to multiple OTTs based on their preferred genres helped narrow down the options. Choi said, "Netflix offers a variety of content such as movies, original dramas, and documentaries, but even after recommendations or searches, I often struggled with what to watch." He added, "I plan to compare other OTT content recommended through free trial services and then decide whether to subscribe additionally."

'Netcha' and 'Weflix' are the trend
Domestic mobile OTT users subscribe to an average of 1.3 services

According to industry sources on the 20th, some communities similar to where Choi sought advice share their experiences of subscribing to multiple OTTs using abbreviations like 'Netcha (Netflix + Watcha)' and 'Weflix (Wavve + Netflix).' Not only telecommunications and IPTV bundle subscribers but also 'multi-subscribers' who proactively try 2 to 3 OTTs and enjoy various domestic and international content are not uncommon. Generally, Netflix is the base, and additional domestic OTT subscriptions are added.

An industry insider said, "Almost all OTTs offer free trial opportunities at the beginning of subscription, and with multi-device login features, 2 to 4 people can split the payment, reducing the cost burden (of multiple subscriptions)." He added, "It is difficult to satisfy preferences for various genres such as dramas, variety shows, and movies with just one OTT service. To fill these content gaps, the trend of subscribing to multiple OTTs may continue."

According to data released earlier by market research firm Nielsen KoreanClick, as of November last year, domestic mobile OTT users subscribed to an average of 1.3 services. Among major mobile OTT users, the proportion of overlapping users who subscribe to other services was estimated at 79.1% for Watcha. This means 8 out of 10 subscribers to this service also watch other OTTs. The overlapping user ratio was 67.5% for TVING subscribers, 42.3% for Wavve, and 39.8% for Netflix.

Reflecting this, some online matching platforms operate to connect those who want to share one account of OTTs like Netflix, Wavve, and Watcha among multiple users and split the monthly subscription fee based on the days used through automatic payments.

Image source=Yonhap News

Not a winner-takes-all 'two-sided market' but complementary goods
80-90% of major US OTT subscribers also subscribe to multiple Netflix accounts

Until now, in online platform businesses, the 'winner-takes-all' structure of market-dominant players has been solidified, and platforms that fail to do so are perceived to be ousted or fade away, according to the 'two-sided market theory.' In contrast, the OTT market is moving toward coexistence with multiple providers when platforms operate by targeting characteristics such as genre or age, being chosen by users as multiple subscription targets.

This trend is even more pronounced in the global market. According to market research firm Statista, 66% of US Netflix subscribers also subscribe to Amazon Prime. Users who watch Disney Plus and Hulu together each exceed 50%. Approximately 80-90% of HBO Max, Apple TV+, Hulu, Disney Plus, and Amazon Prime subscribers also subscribe to Netflix. The average number of OTTs subscribed to per household in the US is estimated at 2.8.

Reed Hastings, CEO and founder of Netflix, recently said in a meeting with domestic reporters, "If each company has content with different appeal and price competitiveness, consumers will use multiple streaming services," and predicted, "(The OTT market) still has opportunities for many companies to continue growing."