Netflix-Naver, Tving-Baemin? Streaming wars take new shape
South Korea's streaming services have realized that their survival hinges on more than just offering compelling content -- platforms are increasingly turning to strategic brand partnerships to combat subscriber churn and fuel growth.
Korean streaming platform Tving is set to unveil a bundled membership offering in collaboration with Baedal Minjok, the nation's top food delivery app, starting June 2.
The combined membership, which marks the first time for a Korean streaming service to partner with a food tech company, merges Baemin Club's paid subscription benefits -- free delivery, exclusive coupons and discounts -- with Tving's ad-supported standard tier.
Subscribers to Baemin Club will now be offered access to Tving's ad-supported plan at an extra cost of 3,500 won ($2.50) per month. Tving's ad-supported plan, which costs 5,500 won on its own, allows users to watch Tving content with intermittent ad breaks.
Meanwhile, Coupang Play is also gearing up to launch South Korea's first free ad-supported streaming service this June. Under the new model, Coupang members will gain free access to Coupang Play's content library in exchange for viewing pre-roll and mid-roll advertisements.
The new model grants regular Coupang members access to both Coupang and Coupang Eats delivery services, as well as to Coupang Play's ad-supported plan.
This shift toward hybrid models, as well as a pioneering move to waive monthly fees, comes after Netflix's collaboration with Naver, which debuted last November.
The partnership, branded as the Naver Plus Membership (4,900 won), gives subscribers free access to Netflix's ad-supported tier, along with bonus Naver Pay points and redeemable cookies for webtoon and series rentals on Naver Webtoon. Currently, Netflix's ad-supported plan without a Naver Plus Membership costs 7,000 won.
Netflix Korea's decision on May 10 to raise prices across all its plans, while maintaining the Naver-Netflix membership at 4,900 won, underscores the significance of the alliance for subscriber retention.
The new partnerships and free ad-supported options come in response to a plateauing streaming market. According to a report from the Korea Creative Content Agency released in December 2024, free streaming service usage surged from 78.2 percent in 2023 to 85.1 percent last year, whereas paid service penetration stalled, inching down from 55.2 percent to 53.4 percent.
'The streaming service market has matured to a point where relying on one or two breakout hits to drive growth is no longer viable,' said an insider from a Korean streaming service, speaking on condition of anonymity.
"Subscriber behavior tends to be substitutive -- when users sign up for a new service, they often cancel an existing one. Right now, domestic streaming platforms are seeing their user base level off at some 30 million, with growth largely tapering off," he said.
This is forcing platforms to pivot their strategies to justify escalating content investments, he pointed out, adding that platforms are targeting subscribers of other popular brands in a bid to expand their market shares.
However, partnerships between diverse platforms may come with unintended downsides. Alongside the appeal of low subscription fees may lie a trade-off, in which businesses onboarded onto retail platforms such as Baemin and Naver Shopping may face higher commission rates and shrinking profit margins.
Additionally, consumer choice may become increasingly limited. As competition among platforms grows, the lock-in effect strengthens, making it harder for users to switch services. The reduced flexibility narrows consumer options, and over time, even as discounts fade or service quality declines, users may be forced to remain with the platform they originally chose.
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