24-Hour Account Rental Service
Account Sharing in the Market Is Also a Problem
Violation of Terms Pointed Out
Screenshot of the 'Paysense' service screen. Paysense is a web-based service that sells daily OTT passes.
[Asia Economy Reporter Cha Min-young] "Rent Netflix for 600 won for 24 hours."
Taking advantage of the popularity of online video services (OTT), a site has even appeared where operators directly resell these as ‘1-day passes.’ Without much investment, they sign up for multiple OTT accounts and split them to sell, acting like the OTT version of the ‘Bong-i Kim Seon-dal’ (a legendary Korean swindler). Following account-sharing sites that gathered party members and earned commissions, the emergence of 1-day passes is deepening concerns in the OTT industry.
OTT 1-Day Pass for 600 Won
According to the industry on the 3rd, ‘Paysense,’ a web-based OTT daily pass service, sells 1-day passes for six OTT services including Netflix, TVING, Wavve, and Watcha. Prices range from 400 to 600 won per day, with Netflix being the most expensive at 600 won.
Upon purchasing a pass, an ID and password are issued for use for 24 hours until the next day. Unlike existing account-sharing sites, the company directly owns the IDs and shares them with members. Each pass has a daily limited quantity, sometimes resulting in ‘sold out’ status. The total quantity per pass is not disclosed according to company policy.
In the market, while account sharing is already problematic, resale is clearly a violation of terms of service. OTT providers’ terms state that “no commercial activity using paid services is allowed without the company’s explicit approval.” An OTT industry official said, "Profiting from resale constitutes infringement of property rights," adding, "If there is an impact on sales, we will take action against the operators." Another industry source said, "It is true that this form poses a bigger problem than account sharing," and "legal review of the site is underway."
Making 4 to 5 Times Profit by Running One Site
There are also accusations of profiteering. For example, in the case of TVING, using a premium pass for four people, they earn 2,000 won per day per individual ID at 500 won each. This amounts to about 60,000 won in monthly revenue. The premium monthly pass purchased via the web costs 13,900 won, so the middleman’s profit easily exceeds 40,000 won. Netflix’s premium pass, the most expensive, is around 17,000 won.
The OTT industry is continuously monitoring account-sharing applications (apps) and websites. The largest in Korea is known to be PicklePlus. As of this date, PicklePlus matched about 4,100 members in the past week. Similar apps include GrayTag, Butz, and Wizni. These services mediate so members can find party members and provide a safe transaction system to earn commissions.
Song Hong-seok, CEO of Paysense Co., Ltd., which operates Paysense, said, "The service launched on May 31 quickly gained great interest in communities because there was market demand," adding, "Rather than focusing only on penalties, please look at Paysense as a way to address what users want and the OTT industry saturation problem."
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