The domestic OTT (online video service) platform Tving is implementing restrictions on account sharing similar to Netflix, limiting it to family members only. According to a recent notification sent to users, starting from the 2nd of next month, Tving will allow viewing through a Tving account for the account holder only, with an exception for members of the same household. Currently, Tving does not restrict watching Tving programs on multiple devices or locations with one account, but this policy will now change to impose such limitations.
As part of this policy, Tving will require users to register a device like a smart TV as the “primary device,” and only users accessing Tving through this device will be considered as members of the same household. If viewing is detected from an internet connection with a different IP address from the primary device, additional identity verification will be conducted. If verification fails, Tving will assume that someone else is using the account and will restrict viewing.
The decision to limit account sharing is viewed as a strategy to improve Tving’s profitability. Initially, having a wide user base was crucial, but now that the OTT market is more established, profitability has taken precedence. Tving’s CEO, Choi Joo-hee, mentioned during the CJ ENM performance announcement in the third quarter of last year that they were considering limiting account sharing, noting that Netflix’s implementation of a similar policy resulted in a 15-20% increase in global subscribers. Consequently, Tving has decided to implement the account sharing limitation that had been under consideration.
Despite various efforts, including the start of Korean Baseball Organization (KBO) broadcasts from last year to attract more users, Tving has yet to escape financial losses. Last year’s revenue was estimated at 435.3 billion won, a 33.4% increase from the previous year, but with an operating loss of approximately 71 billion won. However, this marks a significant reduction in the deficit compared to 2023, which was recorded at 142 billion won.