Netflix raises prices in Korea, third highest globally

Netflix has raised subscription prices for its Standard with Ads and Basic plans in Korea, drawing criticism from users.

Korea’s increase is the third highest globally this year, after Argentina and Canada.

The ad-supported plan increased from 5,500 won (US$3.95) to 7,000 won (US$5.02). The Basic plan, available only to existing users, rose from 9,500 won (US$6.82) to 12,000 won (US$8.61).

The new prices apply immediately for new subscribers and will reflect in the next billing cycle for existing users.

This is Netflix’s second price hike in Korea since 2021.

The Standard and Premium plans remain unchanged. The ad-supported plan via Naver Plus membership stays at 4,900 won (US$3.52) per month.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Netflix’s strategic price increase timing follows subscriber growth

Netflix has followed a consistent pattern of raising prices after achieving significant subscriber growth milestones, demonstrating its confidence in customer retention despite higher costs.

The company just reported adding 19 million subscribers in Q4 2024, its largest quarterly gain ever, bringing its total to over 300 million global subscribers before implementing the current price hike1.

This approach differs markedly from Netflix’s 2011 price restructuring, which caused the company to lose 800,000 subscribers, teaching them to time increases more strategically2.

Wall Street typically responds positively to these increases. Netflix’s stock rose 13% following the recent announcement of both subscriber gains and price hikes1, similar to the 6.5% increase seen in 2019 after a previous price adjustment3.

The Korean market is experiencing the third-highest price increase globally at 27.3%, behind only Argentina (39%) and Canada (33.4%), suggesting Netflix segments its pricing strategy by market strength and competitive position.

2️⃣ Streaming industry’s dual-revenue model evolution reshapes pricing

Netflix’s decision to raise prices on its ad-supported tier represents a shift in streaming economics, where companies traditionally kept ad-supported options affordable to grow viewership for advertisers.