South Korea Adds OTT Service Costs to Revamped Consumer Price Index
South Korea's Ministry of Data and Statistics will include OTT service costs in its revamped consumer price index starting January 2024 to accurately reflect current spending patterns. This change is part of broader efforts to formalize new item weights in the index and enact a 'Basic Act on National Data' within the year to improve national data management.
Key Takeaways
- South Korea's Ministry of Data and Statistics (MODS) will incorporate OTT service costs into their consumer price index, effective January 2027.
- The consumer price index, which tracks about 460 goods and services, is updated every five years to reflect changing spending habits.
- Minister Ahn Hyeong-jun confirmed OTT services are newly reflected to capture price burden according to current spending patterns.
- MODS also plans to enact a 'Basic Act on National Data' within the year to improve national data management.
Why It Matters
The inclusion of OTT service costs in South Korea's consumer price index signals a formal recognition of streaming as a fundamental household expenditure. This integration elevates streaming from a discretionary luxury to a measured component of economic health, impacting how inflation and cost of living are perceived. For the streaming industry, it confirms sector maturity and pervasive adoption within a major global market. Companies operating in or eyeing South Korea should note that government economic indicators will now directly account for their service pricing, making subscriber pricing strategies potentially subject to broader economic analysis. Watch for other nations to follow suit as streaming penetration solidifies globally.
Read full article at biz.chosun.com
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