Naver is enhancing its membership competitiveness by reducing Netflix upgrade fees by up to 1,500 won for Naver Plus users. This move is seen as a strategy to increase user retention, similar to Coupang's expansion of its Wow membership based on Coupang Play.
On June 25, Naver announced that starting July 1, it will lower the Netflix upgrade fees available to Naver Plus members.
The Naver Plus membership, priced at 4,900 won per month, includes the ad-supported standard Netflix plan as a basic benefit. Users can pay additional fees to upgrade to the ad-free standard or premium plans.
Previously, users had to pay an extra 8,000 won for the standard upgrade and 11,500 won for the premium upgrade. However, starting in July, the standard upgrade will cost 6,500 won and the premium upgrade will cost 10,000 won, each reduced by 1,500 won. This means users can access the standard and premium plans for 11,400 won and 14,900 won, respectively, making both options 2,100 won cheaper than direct subscriptions to Netflix.
Industry analysts expect a significant increase in Naver Plus membership subscriptions due to this fee reduction. Considering that the monthly subscription price for Naver Plus is as low as 3,900 won for a one-year subscription, Netflix subscribers can access Naver Plus for just an additional 1,800 won per month.
Netflix is unlikely to suffer losses from this change. According to data analysis firm WiseApp & Retail, Netflix, the leading OTT service in South Korea, surpassed 15 million monthly active users (MAU) at the end of last year, but its growth has recently slowed, dropping to around 14 million MAU in May.
In contrast, Coupang Play is rapidly increasing its user base by focusing on sports content. Its MAU has grown from around 7 million last year to over 9 million this year. Despite a recent large-scale data breach and sanctions from the Personal Information Protection Commission, Coupang continues to see growth through its Wow membership.
Industry experts view Coupang's success as a demonstration of the competitiveness of membership ecosystems that combine content and shopping. Coupang Play has recently expanded its exclusive content offerings, including ticket sales for the 'Big Bang 2026 World Tour in Goyang' and its own sports event series, aiming to attract users and connect them to the Wow membership.
An industry insider stated, "While Coupang Play's growth may have influenced this decision, the essence of Naver's Netflix price reduction is to strengthen membership competitiveness. The strategy aims to secure users through Netflix and sports content and connect them to commerce services like the Naver Plus Store, creating a virtuous cycle."
* This article has been translated by AI.
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