Korean OTT platform users redirect routes for cheaper fees

High subscription fees of over-the-top (OTT) platforms in South Korea are prompting local users to route their access through servers in other countries for cheaper fees.

OTT streaming services providers have been rushing to raise their prices in Korea.

Disney+ raised its monthly ad-free plan by 40.4 percent from 9,900 won ($7.4) to 13,900 won in November last year, and YouTube Premium raised its price by 42.6 percent in December. Netflix eliminated its basic ad-free service plan, which costs consumers 9,500 won per month.

In response, many users are turning to virtual private networks (VPNs), which allow them to access any server in the VPN provider’s network worldwide by letting them change their OTT location. Popular options among Korean users are India and Brazil, where the fees are cheaper.

In Korea, the monthly subscription for YouTube Premium costs 14,900 won per month, but it costs about 2,050 won in India. Family plans are also available in these countries, ranging from 3,000 to 5,000 won per month. YouTube doesn’t allow access to family plans in Korea.

Korean regulators, in the meantime, are concerned about recent price increases.

“Global OTT service providers need to explain their price raises,” said Lee Jong-ho, minister of Science and ICT, in December.

The Korea Communications Commission (KCC) also recently started to look into whether these price hikes violate any rules.