Due to Litigation Burden with OTT Industry,
Some Services Seem to Have Ended
[Asia Economy Reporter Cha Min-young] Paysense, known as the 'OTT version of Bong-i Kim Seon-dal' for selling domestic and international online video service (OTT) content in the form of '1-day passes,' has partially suspended its service.
According to industry sources on the 3rd, Paysense is currently only selling 1-day passes for Netflix and Disney Plus (+) on its webpage. Although it had been selling passes for a total of six OTT services, including Wavve, TVING, and Watcha, which are currently involved in legal disputes, it has narrowed its offerings to two foreign OTTs.
Paysense had been selling daily passes for six OTT services, including Netflix, TVING, Wavve, and Watcha, at 400 to 600 KRW per person. Unlike existing sites that only support account sharing, the company directly owns the IDs and shares them with members. In essence, this is not significantly different from the past illegal resale of content through peer-to-peer (P2P) methods.
In June, three domestic OTT companies?Wavve, TVING, and Watcha?sent Paysense a certified letter requesting the suspension of its service, but Paysense refused to respond and remained uncooperative. Subsequently, on July 1, the three OTT companies filed a provisional injunction at the Seoul Central District Court to halt the service and also initiated a separate main lawsuit, escalating the issue.
Paysense has claimed that it "did not violate the law" and that its service is legal, but it is believed that the legal disputes have become a burden. The OTT industry clearly states in its terms of use that "members may not engage in any commercial activities using paid services without the company's explicit approval."
There is also a possibility of changes to the trial scheduled for the 10th of this month. An OTT industry official said, "It seems important to receive a commitment from Paysense that similar acts will not be repeated," adding, "After discussions with the law firm, we will decide how to proceed with the provisional injunction and the main lawsuit."
Meanwhile, Netflix and Disney+ stated that they are "reviewing internally" regarding this matter.
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