‘Digital Rent’ Soars... OTT Fees Rise by Up to 71%

No Reporting or Approval Required?Just Advance Notice Is Enough
"Essential Daily Service, Minimum Oversight Needed"

It has been found that the fees for major OTT (Over-The-Top) services widely used in South Korea have increased by more than 70% over the past five years. However, under the current system, it is virtually impossible for the government to conduct prior management or supervision, raising concerns that price increases can be implemented unilaterally.

Major OTT (Over-The-Top) service fees have increased by more than 70% over the past five years.

According to data released on October 3 by Assemblywoman Choi Sujin from the People Power Party, who serves on the National Assembly's Science, ICT, Broadcasting, and Communications Committee, the individual plan for YouTube Premium rose by 71.5%, from 8,690 won in 2020 to 14,900 won this year.

During the same period, both domestic and international OTT services such as Netflix, Tving, and Wavve recorded average price increases of about 20-25%. For example, Netflix’s ad-supported plan increased by 27.3%, from 5,500 won to 7,000 won, while Tving’s Basic plan went up by 20.3%, from 7,900 won to 9,500 won. Wavve also raised its premium plan from 13,900 won to 16,500 won starting in 2022, with all major providers adjusting their prices. Disney Plus currently offers its Standard plan at 9,900 won, and in November 2023, it launched a Premium service in Korea at 13,900 won, which is 40.4% higher than the Standard plan.

OTT services have already become deeply embedded in the daily lives of the public. According to a recent analysis by the Korea Communications Commission, the domestic OTT usage rate increased from 69.5% in 2021 to 77% in 2024, and the number of monthly active users (MAU) surpassed 32 million this year. MAU refers to the number of people who used OTT services at least once in a month.

Assemblyman Choi argued, "There is a need for at least a minimum mechanism to prevent excessive increases or opaque notifications of OTT services" (photo provided to aid understanding of the article and unrelated to the content). Yonhap News Agency

Government Intervention Difficult... Political Circles Call for Urgent System Reform

However, OTT price increases are not subject to reporting or approval under the current Telecommunications Business Act, so the government has no legal means to identify or coordinate such changes in advance. OTT providers are classified as value-added telecommunications operators and can adjust prices autonomously as long as they notify users beforehand.

Assemblywoman Choi emphasized, "OTT fees have become essential services used by the vast majority of the public every day, yet they are being increased without any institutional checks." She added, "Like telecommunications fees, there needs to be a system where at least the government is informed of planned increases and social discussions can take place." She further stated, "The goal is not to strengthen price regulations, but there is a need for at least a minimum device to prevent excessive increases or opaque notifications."