[DigitalToday reporter Ho-jung Lee] Naver commerce is tightening its pursuit of Coupang. New inflows and user numbers for Naver Plus Store are rising, and Naver is moving to strengthen user lock-in by lowering Netflix upgrade fees within its membership.

Naver will cut Netflix upgrade fees for Naver Plus membership users from July 1. The monthly cost to upgrade to the Standard plan will fall to 6,500 won from 8,000 won, and the Premium plan to 10,000 won from 11,500 won, each down 1,500 won. The reduced fees will be applied automatically to existing upgrade users as well.

The step is not a simple adjustment of content pricing. Coupang has kept users with its Wow membership bundle of free shipping and returns, Coupang Play and Coupang Eats. Naver is also strengthening a strategy to raise platform time spent and purchase conversion by combining OTT, points, AI shopping and delivery within a single membership.

◆Naver Plus Store sees more new inflows

Naver's chase is first evident in app installation indicators. According to IGAWorks MobileIndex, new installs of the Naver Plus Store app totalled 156,861 from the 15th to the 21st of this month, about 1.8 times Coupang's 87,300 over the same period.

Monthly figures show the same trend. Last month, new installs of Naver Plus Store were 700,353, about 1.7 times Coupang's 409,802. Its share of new installs in the sector also rose from 38.9 percent in March to 41.7 percent in April and 42.7 percent in May.

Monthly active users are also rising. Naver Plus Store overtook 11st for the first time in April and held onto second place in monthly active users among commerce apps for two consecutive months through May. Last month it had 8,750,003 users, leading 11st's 8,209,703 by 540,000. Compared with a gap of 190,000 in April, the difference widened about 2.8 times in a month. Versus March, when it had 7,769,721 users, it increased by nearly 1 million in two months.

The absolute gap with Coupang remains large. Coupang's monthly active users were in the 35 million range last month, about four times Naver Plus Store's level. The user gap narrowed by 1 million, to about 26 million in May from about 27 million in March, but the difference in market dominance remains.

◆Netflix sign-up effect confirmed; fee cut expands membership value

Naver's decision to lower Netflix upgrade fees, rather than other content benefits, has a basis already confirmed in figures. Naver and Netflix disclosed partnership results at a briefing in April last year, saying daily average new sign-ups for Naver Plus membership rose about 1.5 times from before. Shopping spending by new sign-ups who chose Netflix as a benefit also increased more than 30 percent from before joining.

That confirms that content benefits do not stop at membership sign-ups but lead to increased shopping spending. This fee cut is seen as a step to boost that effect again. Previously, Netflix's ad-supported Standard plan was the basic benefit, but users who wanted to watch without ads or use simultaneous access had to pay extra. Lowering upgrade costs can raise satisfaction among existing members while also reducing entry barriers for new sign-ups.

In particular, given that Naver is set to introduce unlimited free shipping in the second half, the content fee cut can be seen as a move to pre-emptively raise the membership's value for money ahead of strengthening delivery benefits.

◆Key is turning install growth into purchases

Naver is also positioning AI-based personalised recommendations as a pillar of commerce competitiveness. In May, the share of total transaction value at Naver Plus Store generated through AI recommendations topped 50 percent for the first time. Product recommendations tailored to users' interests and purchase histories, and a structure that completes everything from discovery to payment and delivery within the app, appear to have influenced the expansion of new inflows.

Still, an increase in new installs does not immediately mean closing in on Coupang. Not all Naver Plus Store users are Naver Plus membership subscribers, and it also needs to be confirmed whether users who install the app lead to actual purchases and repeat payments.

Ultimately, Naver's task is to convert new inflows into membership sign-ups, and membership sign-ups into increased shopping spending. The Netflix upgrade fee cut is a card to raise that conversion rate. The approach is to create reasons to sign up through content benefits, raise usage frequency through points and delivery benefits, and drive purchase conversion through AI recommendations. If it aligns with stronger free shipping in the second half, Naver Plus membership is expected to emerge as a key touchpoint in Naver's commerce ecosystem beyond a simple subscription service.

An industry official said, "Since it has already been confirmed in figures that the Netflix partnership increases membership subscribers and even boosts shopping spending, this fee cut is a calculated move to lift that effect once again." The official added, "If it dovetails with the introduction of free shipping in the second half, the incentive to join Naver's membership will be much stronger than it is now."