Report Description

South Korea OTT Media Services Market is witnessing high demand owing to the rising penetration of fast internet through broadband networks which provides a seamless viewing experience to the consumers. Moreover, the high demand for local content in the country is further driving the  South Korea OTT media services market.

According to the data provided by World Bank, in 2021 around 98% of the individuals in South Korea had internet connection. Moreover, according to a report, approximately 99% of the teens in South Korea had used smartphone in 2021 and the country tops globally with a 96% ownership of smartphones. In 2019, the Korea Information Society Development Institute polled 6,375 adults over the age of 13 and found that 91.6% of OTT service customers watched videos on their smartphones. Thus, with the high penetration of smartphones and internet the demand for OTT platforms in forecastto grow at a significant rate in the coming years.

Moreover, the most paid subscribers were on YouTube, with 8.1 percent of the total, according to the Korea Communications Commission's most recent poll of 6,375 persons in 2020. Additionally, at 3.4 percent and 2 percent, respectively, Netflix and Wavve were rapidly expanding their consumer base.

South Korea has one of the largest film and entertainment industries worldwide. Since many of its shows are viewed internationally, numerous new international production companies have started releasing their films and TV shows via OTT platforms in South Korea. According to a study conducted by the nation's media regulator, the Korea Communications Commission, the paid OTT customers reached 34.8 percent in 2021, up 20.4 percentage points from the previous year. In South Korea, the rate of OTT usage increased to 69.5 percent from 66.3 percent the year before due to the pandemic-driven tendency of staying in.

Government Initiatives to Fuel the Market Growth

According to the article published by Korea JoongAng Daily, the South Korean government will provide 3 to 10 percent tax cuts in production costs for the local OTT streaming platforms. Along with the expansion of two already existing funds, a USD471 million fund for immersive and virtual content and a USD21 million fund for digital media content, a new government-led fund will be created to offer financial support. Furthermore, the South Korean government also claimed that it will establish a five-year plan to promote the service sector, including tax breaks, streamlined regulations, and financial aid.

Rising Investment from International Companies to Fuel the Market Growth

The South Korea OTT media services market is witnessing robust growth due to rising investment from foreign brands due to the presence of large viewership in the country. According to the article published by Korea JoongAng Daily, Paramount Global launched its OTT streaming platform Paramount+ in June 2022. Due to the rising demand for Korean dramas many international OTT platform brands are entering the South Korean market to expand their customer base, which will strategically help them to grab more profit. Additionally, Netflix invested around USD700 million between 2015 and 2020 to increase its range of Korean content and it also set up two specially designed production facilities in the country.

Rising Popularity of Korean Dramas Globally is Driving the Market Growth

The rising popularity of original Korean dramas across the world is driving the OTT media services market in South Korea. According to a report, the Korean drama named All of Us Are Dead is the most watched Netflix series globally and it logged around 113.2 million in the first week of February and 124.7 million in the first week of January in 2022. Moreover, according to the data provided by South China Morning Post, Netflix spent around USD460 million for Korean content. Thus, with the rise in demand for Korean content many brands are spending huge amount of money to expand their consumer base in South Korea. Additionally, the enormous diversity of Korean content is one of the factors contributing to its popularity. There are dramas to suit every preference, ranging from cheerful comedies to tragic melodramas. There are many different genres available as well, such as historical, romantic, thriller, and others.