Coupang Play Takes Bold Step:
Free OTT Service for Regular Members With Ads
Netflix has raised the price of its ad-supported Standard plan from 5,500 won to 7,000 won, but Naver announced that it will maintain the current pricing for its shopping app Naver Plus and the partnered membership plan 'Naenet' (Naver + Netflix).
On May 10, Naver stated, "Even if Netflix increases its prices, the partnership between Naver and Netflix is based on a separate contract, so it is not affected by this price increase." The company added, "Therefore, the Naver Plus membership plan will not be raised, and the partnership benefits will continue to be provided without any changes." Naver also emphasized, "Since its launch in 2020, the Naver Plus membership has never raised its price, and there are currently no plans to do so."
In November last year, Naver Plus launched a partnership membership that allows its members to enjoy the same benefits as the Netflix ad-supported Standard plan at no additional cost. By paying a monthly fee of 4,900 won, users can access both Naver Plus and Netflix memberships, which has made the service popular among users.
The previous day, Netflix raised the prices of its lowest-tier plans, including the ad-supported Standard and Basic plans. As a result, the Basic plan price increased from 9,500 won to 12,000 won, and the ad-supported Standard plan was raised from 5,500 won to 7,000 won.
Despite Netflix's price hike, Coupang Play, a competing online video service (OTT), will offer its service for free to regular Coupang members?not just Coupang Wow members?starting next month, provided they watch ads.
A Coupang Play representative stated, "Now, everyone in Korea can enjoy Coupang Play for free." The representative added, "Most content, including original content, domestic and international TV series, the latest movies, sports, family and children’s content, and live news, will be available free of charge to regular members starting next month."
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