[Living Economy] "This is a problem" OTT plan that only Koreans lose money?

■ Broadcast: YTN Radio FM 94.5 (09:00-10:00)
■ Host: Reporter Cho Tae-hyun

■ Air date: October 18, 2024 (Friday)
■ Talk: Yang Gil-ho, head of the International Trade Support Team of the Korea Consumer Agency Market Research Bureau


#OTT #pricing plan #Charges #Netflix #DisneyPlus #YouTube #Contract Termination

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information.

◆ Reporter Cho Tae-hyun (hereinafter referred to as Cho Tae-hyun): It's time for "Smart Consumer Life" to deliver useful information that can make you a smart consumer. OTT platforms have become more familiar than TVs, from the recent popular "Black and White Cook" to various movies and dramas. As the number of users increases, related consumer counseling is increasing. Let's talk with Yang Gil-ho, team leader of the International Trade Support Team of the Market Research Bureau. Team leader, you're here, right?

◇ Yang Gil-ho, Team Leader of the International Transaction Support Team of the Korea Consumer Agency Market Research Bureau (hereinafter referred to as Yang Gil-ho): Yes, hello.

◆ Cho Tae-hyun: I told you earlier as I opened the door. Online video services, related consumer counseling is increasing as the number of users increases every year?

◇Yang Gil-ho: Domestic OTT utilization is increasing every year. According to a survey by the Korea Communications Commission, the domestic OTT utilization rate has increased from 69.5% in 2021 to 77.0% in 2023. Meanwhile, as OTT use increases, nearly 400 consumer consultations are continuously received every year.

◆ Cho Tae-hyun: As the number of consumer consultations increases, we need to look at what areas users are dissatisfied with. What was the item that had the most requests for counseling?

◇ Yang Gil-ho: As a result of analyzing by reason of consultation, 47.0% (344 cases) of inquiries related to "contract cancellation, cancellation/penalty" followed by 28.9% (211 cases) of "unfair fee payment, duplicate subscription fee claims" and 7.1% (52 cases) of "content use disorder."

◆ Cho Tae-hyun: It's difficult to cancel the service right away because there are a lot of monthly and annual payments with a subscription service?

◇Yang Gil-ho: All the businesses surveyed had the function of applying for online cancellation. However, when consumers applied for termination online, the operators did not immediately respond, maintaining the service until the expiration of the contract period, and then terminating the contract without a refund. Consumers had to use separate procedures such as phone calls and chat consultations to get a refund of the remaining payment. In this process, the problem was that consumers might not be aware of the fact that a refund of the remaining usage fee was possible during the termination process. Businesses needed sufficient guidance to simplify the termination process or allow consumers to choose intermediate termination.

◆ Cho Tae-hyun: There was even a platform that was difficult to resolve in the middle? Where are you?

◇ Yang Gil-ho: Netflix did not allow intermediate cancellation and refund of the payment seven days after the payment date, which required improvement.

◆ Cho Tae-hyun: There are many people who use OTT at a low price by applying discounts from telecommunication companies. But in the process of 'transferring' like this, there are cases where you pay double fees or pay additional fees even though the contract is over?

◇Yang Gil-ho: In some cases, the owner of the existing account paid the charges in duplicate for reasons such as subscribing to OTT combined products by mobile carriers, or even after the contract was terminated, the charges were charged and paid. In addition, some operators have limited the scope of refunds for overpayments to six months due to the fact that the viewing history on the system is only checked for up to six months, which required improvement.

◆ Cho Tae-hyun: This overpayment happens more than I thought. Why is it happening like this?

◇Yang Gil-ho: There was a lack of duplicate subscription verification procedures in the OTT subscription process. In particular, as existing OTT account holders subscribed to OTT combined products of mobile carriers, related problems were noticeable. In addition, overpayment must be refunded excluding fees for refund, but in the case of some business operators (3), the terms and conditions on the method and procedure for refunding overpayment were not in place.

◆ Cho Tae-hyun: Okay. When there are complaints like this, the biggest complaint is also the complaint about the fee for using money. Major OTT platform usage fees, what is the level compared to other countries?

◇ Yang Gil-ho: Yes, this is also the most interesting part for us. You're probably using Netflix and Disney Plus the most. When we compared the rates by country, Korea was located in the middle. In the case of Netflix, the premium pricing plan was about 18,500 won on average in 245 countries. It's 17,000 won in our country. And Disney Plus's average price in 81 countries was about 14,300 won based on premium monthly pricing plan, while that in Korea was 13,900 won. And there was a problem. In the case of YouTube, there were various discount pricing plan such as student membership and family pricing plan abroad. But as you know, in Korea, we only operated a single YouTube premium pricing plan. Therefore, it was necessary to expand consumer options in Korea by introducing a discount pricing plan.

◆ Cho Tae-hyun: Okay. Today, we heard about OTT platform usage fees and various complaints. So far, I have been with Yang Gil-ho, team leader of the International Trade Support Team of the Korea Consumer Agency Market Research Bureau. Thank you for talking today.

◇ Yang Gil-ho: Thank you.