Naver cuts Netflix upgrade fee to half the standalone price

"These days there's nothing worth watching on Netflix except 'Cham Gyoyuk,'" said a 30-year-old Netflix user surnamed Lee.

Naver Plus membership subscribers will soon pay less to upgrade to Netflix's ad-free Standard plan. Starting next month, the additional monthly fee for the upgrade will drop from 8,000 won to 6,500 won — roughly half the 13,500 won ($9) standalone Netflix Standard subscription price. The price cut comes as Netflix's share of South Korea's streaming market has been slipping, drawing attention to whether the discounted bundle can help reverse that trend.

According to industry sources Thursday, Naver will reduce the Netflix upgrade surcharge within its Naver Plus membership by 1,500 won a month starting next month. The Standard upgrade fee will fall from 8,000 won to 6,500 won per month, while the Premium upgrade fee will drop from 11,500 won to 10,000 won.

Naver Plus membership is a subscription service priced at 4,900 won a month that offers shopping rewards and digital content access. Subscribers can choose Netflix's ad-supported Standard plan as one of their membership benefits. Those who want the ad-free Standard or Premium tier must pay an additional upgrade fee on top of the base membership.

With the new pricing, a Naver Plus member who upgrades to Netflix Standard will pay a total of 11,400 won a month — 4,900 won for the membership plus the 6,500 won upgrade fee — saving 2,100 won compared with the 13,500 won standalone Netflix Standard price.

The Premium tier sees the same reduction. Members who upgrade to Netflix Premium through Naver Plus will pay an additional 10,000 won a month, bringing the total monthly cost to 14,900 won — 2,100 won less than the 17,000 won standalone Netflix Premium price.

The price adjustment comes as competition in South Korea's streaming market intensifies. Netflix's monthly active user share among domestic streaming apps stood at 37.8 percent in May, down from around 40 percent in June last year, according to market research firm WiseApp Retail.

Coupang Play and Tving, meanwhile, have gained ground over the same period. Coupang Play held a 24.4 percent MAU share in May, while Tving reached 17.8 percent. Coupang Play has drawn viewers with sports broadcasting rights, while Tving has leveraged Korea Baseball Organization league content to build its audience. Analysts say Netflix's once-dominant position in the domestic streaming market is no longer as secure as it once was.

For Naver, the Netflix partnership benefit is a tool to sharpen its membership offering. Lowering the cost of high-frequency content like Netflix can help retain existing members and attract new ones. Subscribers gain both streaming discounts and shopping rewards, while Naver benefits by keeping users engaged across its shopping, payments and content services.