Seoul, South Korea - Coupang (NYSE: CPNG) announced today that it will increase the monthly fee for its "WOW Membership" paid membership program to KRW 7,890 (US$5.74) for new members, effective April 13.
Existing members will see the price change take effect in August.
The company emphasized that despite the price increase, WOW Membership remains highly competitive compared to other primary on-demand video streaming membership services in South Korea.
Some on-demand video streaming services that only offer video streaming charge monthly fees of up to KRW 17,000 (US$12.37), more than double the cost of Coupang's WOW Membership.
WOW members enjoy free shipping, free returns, unlimited OTT viewing via Coupang Play, and free food delivery via Coupang Eats.
The company estimates that members who regularly use these services can save an average of KRW 970,000 (US$706) per year compared to non-members, not including the monthly membership fee.
Coupang also recently announced plans to invest more than KRW 3 trillion (US$2.18 billion) over the next three years to expand its logistics infrastructure, implement advanced automation technology, and improve its delivery networks.
As of the end of 2023, Coupang's WOW membership program had 14 million paid subscribers, an increase of 27% year-on-year.
If this number of paid subscribers remains constant, Coupang can generate KRW 487.2 billion (US$354.6 million) additionally in annual membership revenue.
US$1=KRW1,374.20
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