Are you still watching? Overseas Netflix price surge worries Korean customers

Netflix's decision to increase subscription prices in certain countries is concerning Korean subscribers that a price hike is imminent, following a two-year hiatus of increases in the region.

The Netflix logo is displayed at the entrance to Netflix Albuquerque Studios film and television production studio lot in Albuquerque, New Mexico, on October 13, 2023. [AFP/YONHAP]

Netflix's decision to increase subscription prices in certain countries is concerning Korean subscribers that a price hike is imminent, following a two-year hiatus of increases in the region.

Netflix announced that it will raise the monthly subscription plans for basic and premium services in the United States, U.K. and France at its third-quarter conference call on Wednesday.

The price hike is between $2 and $3 for the United States, an extra €2 for France and between £1 and £2 for the U.K.

It is the highest price surge in more than two years, and the decision is believed to have been fueled by the company’s boost in confidence as it added 8.8 million new subscribers in the July-September period.

Netflix also increased the number of countries to scrap its cheapest basic plan without ads from next week in a move to secure more subscribers to its ad-supported plan. From next week, the streaming platform will remove the plan from Germany, Spain, Japan, Mexico, Australia and Brazil.

A Netflix Korea spokesperson denied the two speculations to the Korea JoongAng Daily.

"There are no current plans for Netflix to raise its monthly subscription tier or scrap the basic service without ads in Korea," the spokesperson said.

It has been almost two years since Netflix raised the subscription fee in Korea since November 2021. Korea is also the only one of the two remaining countries — the other being France — where both subscription plans, the cheapest basic plan without ads and ad-supported plan, are offered.

“This quarter, we grew our ad plan membership 70 percent sequentially quarter to quarter,” said Netflix’s co-CEO Greg Peters. “We now have 30 percent of our new sign-ups choosing our ads plan in our ads countries.”

Peters emphasized the subscription plans are a “low-entry price point” and “an amazing offer” compared to other streaming platforms, traditional pay TV and even the price of a movie ticket.

Another streaming platform Disney+ Korea is raising the monthly subscription fees by 4,000 won ($2.96) from Nov. 1.

Currently, Disney+ runs a single subscription plan, which costs a monthly fee of 9,900 won or 99,000 won for an annual subscription.

From next month, the platform will run under two subscription tiers, standard and premium. For the latter, users need to pay monthly 13,900 won, and 139,000 won annually. Options offered on the premium service are what the base membership currently offers.

Subscribers who entered the service before Nov. 1 will be able to use the premium membership fee for the prior price of 9,900 won monthly and 99,000 won annually.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]