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.