As Disney+, Tving follow Netflix's lead in restricting account sharing, consumer displeasure mounts

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As Disney+, Tving follow Netflix's lead in restricting account sharing, consumer displeasure mounts

Audio report: written by reporters, read by AI


A woman stands next to a logo of Netflix during an event in Mumbai, India, Feb. 29, 2024. [REUTERS/YONHAP]

A woman stands next to a logo of Netflix during an event in Mumbai, India, Feb. 29, 2024. [REUTERS/YONHAP]

 
“Want to share my Netflix account?” — once a common question among Korean users of online streaming services — is quickly becoming outdated.
 
Following Netflix’s crackdown on account sharing, Disney+ and Tving are also implementing restrictions prohibiting users from sharing accounts with people outside their household.
 

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What's going on?
 
Starting June 24, Disney+ will ban domestic subscribers from sharing accounts with anyone not living in the same household. In an email sent recently to subscribers, the platform said, “Membership is, in principle, limited to a single household,” and users living separately must either sign up individually or pay an additional fee.
 
Netflix implemented such restrictions last year, and Tving announced in March that it will do the same starting July 1.
 
Consumers have obviously responded negatively. According to the Korea Consumer Agency, complaints related to so-called over-the-top (OTT) online video streaming services totaled 374 in April — a more than 300 percent increase from the previous month.
 
Baseball fans, in particular, expressed frustration over Tving's restrictions, as the platform broadcasts Korea Baseball Organization (KBO) League games. Online communities have been flooded with complaints such as, “Do I really need a separate account even though we’re family?”
 
streaming platform single user graphic

streaming platform single user graphic



Why now?
 
The push to restrict account sharing comes as the domestic streaming market reaches saturation.
 
According to the Korea Communications Commission, the percentage of people who used streaming platforms in Korea rose from 66.3 percent in 2020 to 79.2 percent last year.
 
“In a mature market, increasing average revenue per user becomes more important than simply expanding the subscriber base,” said Lee Sung-min, a professor of media arts and sciences at the Korea National Open University.
 
Initially, platforms tolerated account sharing as a kind of trial marketing to attract new users, but now that the services are considered essential, converting shared accounts into paying users has become a top priority.
 
Tving [TVING]

Tving [TVING]



Making up for the investment?
 
Netflix, the first to implement these restrictions, reportedly saw a 15 to 20 percent increase in subscribers after the move — a result that is now influencing other platforms.
 
“Unlike Tving, which is backed by CJ ENM, and Disney+, which is owned by Disney, Netflix relies solely on its content to generate revenue,” said an industry insider. "Securing sustainable funding for content investment makes a one-person-one-account model inevitable.”
 
However, with account sharing blocked and subscription fees rising, consumers feel the pinch of so-called “subscription inflation.”
 
Last month, Netflix raised the price of its ad-supported plan from 5,500 won ($3.99) to 7,000 won — a 27 percent increase — and its basic plan from 9,500 won to 12,000 won — up 26 percent.
 
The impending account-sharing bans have sparked concerns over a wave of cancellations next month. According to the Korea Culture and Tourism Institute, more than one-third of domestic OTT users currently share their accounts. Of those, 63.7 percent said they would cancel their subscription if sharing is restricted.
  
A “Naver-Netflix Meetup” session was held on April 28 at Naver Square Jongno in central Seoul to reflect on the results and significance of the two companies’ six-month collaboration. [NAVER, NETFLIX]

A “Naver-Netflix Meetup” session was held on April 28 at Naver Square Jongno in central Seoul to reflect on the results and significance of the two companies’ six-month collaboration. [NAVER, NETFLIX]



What's next? 
 
As the era of “one account per user” approaches, platform services are refining their strategies.
 
Starting this month, Tving has partnered with the food delivery platform Baedal Minjok (Baemin) to offer a bundle promotion. Members of Baemin’s subscription service Baemin Club, which costs 1,990 won per month, can access Tving’s ad-supported plan for just 100 won over three months. After the promotional period, the monthly fee will increase to 3,500 won.
 
Netflix, for its part, teamed up with Naver last November to launch the “Naenet” membership, which lets Naver members who pay 4,900 won monthly access Netflix’s ad-supported tier — normally 7,000 won per month.
 
Coupang Play, which still allows account sharing, is pursuing a different approach. Until now, the service was available only to paid Coupang Wow members, but starting this month, it will open to all users — provided they watch ads. 
 
“Since Coupang Play is tied to Coupang’s e-commerce platform, its strategy is focused more on expanding the overall user base than monetizing OTT access," said Prof. Lee.


Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY MOON SANG-HYEOK [[email protected]]
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