Netflix also faces increasing competition in the South Korean streaming market as Disney+, the flagship streaming service of U.S. Still, he did not say whether Netflix will pay for its network usage. The number of subscribers in South Korea is estimated to have increased to about 4 million. In September, SK Broadband filed a lawsuit against Netflix to demand network usage fees, saying that Netflix did not come forward for talks even after a court ruling in June that it is "reasonable" for Netflix to provide something in return for the service.ĭean Garfield, vice president of global public policy at Netflix, said earlier this month in Seoul that he is well aware of controversies surrounding costs from increased network traffic due to a surge of viewers in South Korea. South Korean internet service providers have accused Netflix of free-riding on their networks despite huge traffic overload caused by the streaming service. The price hike - the first since Netflix launched its streaming service in South Korea in 2016 - came amid criticism in South Korea for refusing to pay for network usage despite increased data traffic. The basic plan remained unchanged at 9,500 won. The standard plan rose to 13,500 won, up 12.5 percent from 12,000 won. Netflix's premium plan jumped to 17,000 Korean won (US$14), up 17.2 percent from 14,500 won, in the latest subscription plans posted on its website Thursday. streaming giant Netflix has raised its monthly subscription fees in South Korea as increased data traffic over its hit "Squid Game" rekindled controversies with internet service providers over network usage. The original piece said the price for new customers was to be increased from £6.99 to £7.49, when in fact it was increased in June 2015.SEOUL, Nov. This article was amended on 13 June to correct the point about Netflix price rises.In January, the company announced an aggressive roll-out to an additional 13 countries, effectively making the service available in all but a handful of places including China, North Korea and Syria.Īt the end of last year, Netflix had 27 million paying subscribers outside the US – it has about 5 million in the UK – and its international operation made a loss of £333,000.īy comparison, Amazon’s video service is available in just five markets to date (UK, US, Germany, Austria, Japan), with a UK subscriber base estimated at 2 million. The company has spied rapid expansion beyond its home market in the US as the key to building subscribers numbers and revenues to start to drive significant profits. The barely profitable Netflix made almost $7bn in revenues last year as subscriber numbers climbed by 30% to 75 million. Netflix does not publish viewing figures for any of its shows, but this week gave a glimpse into how its customers “binge-watch” on their favourite shows, suggesting the first season of a TV drama was typically completed in just a week. Its $1.4bn increase in total spend last year was mainly because of a major drive to expand the amount of exclusive and original programming it offers to entice new customers. Last year, Netflix revealed that the cost of acquiring, licensing and producing TV and film content over the next five years surged past the $10bn mark for the first time. Rival services such as Amazon and Sky’s Now TV have not yet managed to match its success, but its burgeoning popularity has also come at a cost in terms of content. Netflix has seen rapid expansion with more than 5m households signed up to the service according to research by ratings agency Barb. Similar changes were introduced in the US in May. The price rise sees the beginning of the end of Netflix’s policy of offering cheaper subscriptions to long-standing customers, a process known as “grandfathering”. Once best-known for its archive of film and TV content, it has invested heavily in new programming in a bid to attract new subscribers.
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