The price of YouTube Premium increased from 14,000 won to 19,500 won for iPhone, and a number of consumers have canceled their subscriptions. Never- theless, the subscriber rates for YouTube Premium are still high. As some OTT (Over-the-top, online video service) companies are raising prices one after the other, ‘streamflation’ is getting  worse. Netflix suspended their ‘basic membership’ which is the cheapest subscription, and Disney Plus separated an existing single charge of 9,900 won into ‘standard’ (9,900 won) and ‘premium’ (13,900 won). In the early days of OTT services, there was a price competition with lower prices and various promotions. However, as some problems such as stagnation in the number of users and rising content production costs incurred, the subscription fees have been increased. Despite criticism, there are many people who still sub- scribe. Why are we fascinated by these services?

 It’s not an exaggeration to say that 2023 is the age of subscriptions. If consumers pay an extra fee at regular intervals, they can use various services for food, delivery, and magazines. The ‘subscription economy’ has taken root instead of the ‘ownership economy’ and ‘sharing economy,’ where consumers have ownership or rights to products for a certain period of time through a one- time transaction. The main factor for the subscription economy is the ubiquity of smartphones. Mobile services that are optimized for subscription services which can be used regardless of time and space make life more convenient. In addition, from the provider’s perspective, consumers pay a certain amount of money, so the company’s business can be stable.

 The reason why consumers are fascinated by subscription services is their propensity to consume. The remote culture that developed because of COVID-19 and the economic burden of purchasing goods created a social atmosphere that values sharing differently than before. This has an impact on consumers’ choices, which leads to the consumers’ consumption propensity. The feeling that it is financially burdensome to pay the cost of owning something is expressed through the subscription phenomenon. Modern consumers usually determine whether to continue purchasing products or services after testing them first rather than buying them unconditionally. In addition, customized services that respect individual tastes and preferences are an appeal of subscription services. Consumers feel that subscription services cater personally to them.

 In fact, the subscription service is a flat rate system where the price increases as people use it. If various factors in daily life become dependent on the services, it can be a huge burden for each consumer’s financial state. Further- more, poor economic conditions leading people to avoid consumption can cause weak growth in the social economy. Subscription services sometimes have lock-in effects that make consumers stick to their current consumption. Due to the lock-in effect, consumers don’t make any conversion of consumption to outstanding products, and they remain using existing products or services. Instead of people consuming efficiently considering their own economic condition, they are "locked down” in an inefficient consumption cycle.

 If subscription services become more widespread, the big and small freedoms that we enjoy can disappear. In January 2024, the OTT platform TVING was designated as the preferred bidder in professional baseball broadcasting rights for three years. It means, there can be a violation of viewers’ universal access and also means that people who cannot afford it are gradually losing their basis for leisure time. Furthermore, as people 

pay extra subscription fees that they didn’t have to pay before, consumers’ consumption patterns can change because of unexpected expenses, and this leads to financial burden.

 Subscription services have definitely provided us with a convenient life. However, is our economic life really healthy? As consumers, it’s important to determine our consumption patterns by using free trial products rather than accepting subscription services uncritically. Likewise, we have to take a cautious attitude to avoid economic harm from ‘dark-nudge¹⁾’ or ‘dark-pattern²⁾’ which makes it difficult for consumers to cease the services. We have to make various efforts in our daily lives to become more critical consumers.

1) Behavior that induces consumers to make irrational consumption in order to make interests for a company. ‘Nudge’ means to jog with one’s elbow, the dark-nudge products are persuasive and gentle.

2) The interface which is designed to deceive people, and is also called ‘consumption-inducing marketing’ or ‘deceptive design.’ It guides users secretly in Internet sites or smartphone applications to purchase products or sign up for services.

77th Reporter • JOE YEON WOO • amyjoe0213@naver.com