Content-driven OTT, who pays for cheap?”
In the face of global video-on-demand (OTT) giant Netflix, indigenous OTTs are launching one subscription price cut after another. But consumers are not happy. Despite the deep discounts, the impact is minimal. In fact, it’s not uncommon for MAUs to drop month-over-month. It is pointed out that the lack of ‘killer content’ is a problem.
To commemorate the recent launch of its original drama “Park Ha-kyung’s Travelogue,” Wave announced that it will sell standard and premium monthly passes 33% cheaper than before until the 7th of next month.
As a result, the premium annual subscription, which was previously priced at 139,000 won, will be available for 115,000 won, and the standard annual subscription, which was previously priced at 109,000 won, will be available for 87,500 won. Divided by the monthly subscription fee, Premium is 9,291 won per month and Standard is 7,291 won per month. That’s a savings of about $3,000 compared to the previous Premium monthly subscription of $13,900 and Standard monthly subscription of $19,900.
Compared to Netflix’s standard ($13,500) and premium ($17,000) plans, this is almost half the price.
Tiving Wave logo photo
However, discount promotions do not necessarily lead to an increase in users. In some cases, the number of monthly active users drops dramatically after the promotion. In fact, Wave ran a 44% off annual subscription promotion with Timon in December of last year, only to be met with a lackluster report card. In December, Wave reported 408,243 monthly active users, down from 419,649 in the previous month. January’s monthly active users were also down from December with 4,011,024. During the same period, the number of new application installations also decreased from 215,752 in November to 178,779메이저사이트 in December to 160,469 in January.
In the case of Tibing, which offered a 41% discount on annual passes in April, both the number of new app installs and monthly active users increased significantly compared to the previous month. The number of monthly active users increased from 4.591 million in March to 4.949 million in April, and the number of new app installs increased from 253,454 in March to 370,239 in April. However, for the October event, the number of monthly active users increased by 20,000 from the previous month (4.274 million) to 4.369 million, and the number of new app installs increased by 48,000 from September to 31,454.
A few years ago, when the OTT market was just starting to grow, discount promotions were quite effective in attracting subscribers. However, in recent years, they have not been as effective as they once were. The industry attributes this to the subscription patterns of consumers, who subscribe to and cancel OTT services based on killer content. This is because consumers are paying $100,000 for an OTT service that has nothing to offer, and will subscribe to it even if they have to pay full price. Some are even concerned that frequent discount promotions by OTT companies may only worsen their profitability.