11/6/2023 0 Comments Netflix pricing 2016![]() ![]() Some companies have joined hands with Netflix to enjoy a boost in their own subscriptions. ![]() Armed with the resources to create their own original contents, they are expected to defend the home market against the flood of new offerings from Netflix and other streaming giants. Together, they are expected to become the largest homegrown video streaming service in Korea, with a combined 13 million subscribers. SK Broadband, a subsidiary of the country’s top mobile operator SK Telecom, is in the final stages of combining its mobile video streaming app Oksusu with Pooq, a streaming service under Korea’s three major broadcasting stations. Korean platform companies and mobile carriers have been making swift moves to fend off threats from Netflix and other streaming services. This has made the country a prime testbed for all types of video platforms for both local and multinational players. South Korea is the world’s most wired society, with people spending a record amount of time on handheld devices. At home, the company has flexed its pricing power by hiking fees for American users by 13 to 18 percent this year. This largely explains why Netflix has tapped Asia’s emerging markets as the target for its new pricing model experiment, reducing prices in certain markets to broaden access and accelerate growth. The convergence of devices and platforms has sparked a rapid transition from TV to mobile, with smartphones now the primary screen for most viewers, especially in Asian countries. Its aggressive new subscription plans are also expected to appeal greatly to Korean consumers at a time of fast-changing media consumption habits. Netflix’s lower-priced tier would make it more price-competitive against local pay-TV services, which have so far commanded the dominant market share in Korea with their affordable monthly subscriptions of around 10,000 won. ![]() Since entering Korea in 2016, Netflix has been expanding its user base at a rapid clip, with subscribers jumping from 300,000 in late 2017 to 2.4 million as of February 2019. It’s priced at 6,500 won ($5.72) per month, 30 percent off Netflix’s current cheapest plan in the country and less than half its premium plan. ![]() The new offering is available only to a limited number of Korean users as it’s still in the trial stage. Netflix is currently testing a mobile-only subscription plan in select countries, including South Korea, Malaysia and India, which lets viewers watch only on their smartphones or tablets at a considerably lower cost. I'm not sure a lot of people will leave it,” LeBrecque told Yahoo Finance.이미지 확대Global streaming giant Netflix is seeking to offer cheaper and wider price packages on top of unmatched content titles to reach out to more viewers, delivering another upset to the over-the-top (OTT) service market in Korea where local telecommunications players and content providers have already become intimidated by its fast encroachment. “You might think might go the other way, and people would get rid of their Netflix, but I don't know, I'm one of their addicts too, so it's almost like cigarettes, you got to have one, you've got to have your Netflix. However, Leon LaBrecque, Sequoia Financial Group's chief growth officer, doesn’t think think the price increases will scare off subscribers. One of the main concerns about hiking prices is that the existing customers will leave, and it will deter new customers from wanting to sign up. New customers will be affected immediately, while existing customers will experience the changes over the next three months. This will be the fourth time that Netflix has raised prices for its U.S. We believe this action has a high probability of success, further fueling the Netflix flywheel.” subscriber fees by 13-18% – consistent with recent changes in Canada. RBC analyst Mark Mahaney wrote in a note to clients that the new price hike will be a successful move by the company. ![]()
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