제 26 호 Streamflation
Kicker: LIFE
Streamflation
By Sol-Mi Lim, Cub-reporter
In recent years, major global OTT platforms, such as Netflix, Disney+, and YouTube Premium, have steadily raised their subscription fees, triggering frustration among users worldwide. This trend has given rise to a new term: streamflation, a combination of "streaming" and "inflation," used to describe the increasing costs of maintaining access to multiple streaming services. The impact of streamflation is not limited to international services. South Korea’s own OTT platforms, including Tving and Wavve, have also adjusted their pricing policies, placing a growing financial burden on young consumers—especially university students—who often rely on these platforms for both entertainment and relaxation.
Ad - Supported Plans: A Double - Edged Sword
To alleviate the burden of rising OTT prices, some companies have introduced advertising-supported subscription plans. These plans offer users a lower monthly fee in exchange for periodic advertisements during content playback. Netflix has launched such a plan in Korea, and other platforms are testing similar models. While these options reduce costs, they come with tradeoffs. Some viewers find the ads disruptive to their immersive experience. Moreover, privacy concerns have surfaced due to data collection practices used in targeted advertising. Students, in particular, often choose ad-supported plans due to financial constraints, but their long-term satisfaction remains uncertain.
Government Scrutiny and the Debate over Fair Pricing
As subscription fees rise and OTT services become household essentials, the South Korean government has begun to examine whether price hikes are justifiable and transparent. In a country where streaming services are integral to everyday life, especially for students and young consumers, concerns are mounting over whether users are being overcharged without adequate explanation.
In early 2024, the Korea Communications Commission (KCC) hinted at the possibility of introducing consumer protection guidelines specifically for digital content platforms. While these are not formal regulations, they reflect growing public pressure to ensure that OTT platforms clearly communicate the reasons behind price increases, provide fair service tiers, and respect users' rights. However, the industry strongly resists these moves. OTT providers argue that overregulation could stifle innovation, restrict the growth of domestic content production, and interfere with their global competitiveness. They emphasize that price adjustments are often necessary to invest in high - quality original series, improve user interfaces, and expand content diversity. The outcome of this tug-of -war between government and platform providers could set a precedent for how digital media services are governed in Korea and possibly across Asia.
Coupang Play: Redefining OTT through Bundled Strategy
Amid the turbulence, Coupang Play has emerged as a unique case in Korea’s OTT market. Unlike competitors who rely on direct subscription revenue, Coupang Play is included as a free benefit for Coupang Wow members-users who pay a monthly fee for premium e-commerce perks like fast delivery and discounts. This bundling strategy offers a sharp contrast to the traditional OTT business model. For students already using Coupang for daily essentials, Coupang Play is an effortless add - on that requires no separate subscription. It creates a sense of added value rather than additional cost, appealing especially to cost sensitive users.
Coupang also focuses on sports broadcasting, including exclusive rights to Premier League matches and local sporting events. This differentiates the platform from others that primarily push drama and movie content. By targeting niche interests and leveraging its existing logistics ecosystem, Coupang Play is shifting the narrative from “just another streaming service” to a lifestyle utility.
Furthermore, Coupang's approach allows it to avoid the controversy of price hikes or ad interruptions altogether. Its content library may not be as vast as Netflix or Disney+, but its strategy shows that content relevance and convenience can matter more than sheer quantity. In a saturated market, Coupang Play is proving that integration, not isolation, may be the key to survival.
The South Korean OTT market is undergoing a strategic transformation. With price hikes, new ad -supported plans, and increasing government scrutiny, users are no longer passive subscribers. They are becoming selective, budget - conscious consumers who actively evaluate the cost and quality of digital services.
In this evolving landscape, platforms like Coupang Play stand out by offering alternative models that focus on value integration rather than pure content volume. As the debate over pricing and regulation continues, one thing is clear - students and everyday users will play a critical role in determining which platforms thrive and which fall behind.
Sources:
https://kcc.go.kr/user.do?mode=view&page=A05030000&dc=&boardId=1113&cp=1&nop=10&ctx=ALL&searchKey=ALL&searchVal=OTT&boardSeq=65109
https://kcc.go.kr/user.do?mode=view&page=A05030000&dc=&boardId=1113&cp=1&nop=10&ctx=ALL&searchKey=ALL&searchVal=OTT&boardSeq=64933
