Online shopping mall operator Coupang releases OTT service for premium subscribers

SEOUL -- Coupang, nicknamed the South Korean version of Amazon, has released an over-the-top video-on-demand service for a very low price of 2,900 won ($2.6) to tap the domestic video content market dominated by Netflix, the world's most popular online video streaming service, with a market share of 40 percent.  

Coupang is the second-largest online shopping mall operator with a market share of 13 percent in 2019, according to Hana Investment Banking & Securities. According to the Korea Internet and Security Agency, a state internet watchdog, South Korea's online shopping market stood at 133 trillion won ($120 billion) last year.

The company firmed its foothold in South Korea's ecommerce market where competition is fierce by offering an overnight grocery delivery service. The convenient service garnered huge popularity among young working people and housewives when they were grounded by the nationwide social distancing campaign this year.

The online shopping mall operator said in a statement on December 24 that it released "Coupang Play," an over-the-top (OTT) service for Android devices. The OTT service is provided through Coupang's mobile shopping app. Apple devices and PCs will be supported later.

"We will provide differentiated service by offering original content created by Coupang Play," a Coupang official was quoted as saying. Coupang said that it will provide video content covering various genres such as movies, entertainment shows, documentaries and animation.

Coupang Play is available exclusively for "Coupang Wow" subscribers. Coupang Wow is a premium service that offers special benefits for a monthly subscription fee of 2,900 won. Coupang Play OTT service is provided free for the online shopping mall's premium subscribers. 

Amazon, the role model of Coupang, is the world's largest online shopping mall operator with more than 197 million monthly users. The company also provides technology-related services such as cloud server services and Echo, an artificial intelligence voice assistant service. The e-commerce giant also operates an OTT service that is serviced worldwide.