Concerns over Netflix’s influence on South Korean online streaming services grow, local streaming platforms claim
Concerns about Netflix’s impact on the South Korean online streaming market are growing. The government stated that it plans to support local projects and secure content rights.
Netflix’s investment of $2.5 billion in South Korean content has raised concerns about its influence on the local market. The impact of Netflix on the South Korean entertainment industry has been significant, with shows like “Squid Game” gaining worldwide recognition. Although Netflix has elevated South Korean content globally, concerns persist, prompting calls for support from the government and Netflix for the local market and creators. According to local streaming platforms, there is a growing demand for the government to back local projects and protect content rights.
To foster competition, the South Korean government announced that it intends to provide financial aid ($390.09 million) to local streaming platforms. Academics, including professor at Sejong University, Lim Jong-soo, stated that the government could take additional measures to assist creators by securing intellectual property rights and ensuring equitable profit distribution.
In 2022, South Korea’s content exports, surpassing other industries, amounted to $13 billion, but Netflix dominates the South Korean market, holding a 38.2% share overshadowing local streaming service Tving’s 13.1% share. This has prompted South Korean politicians to call for Netflix to better reward successful creators. Netflix asserts that it compensates creators fairly, regardless of a show’s success. While creators appreciate Netflix’s support, challenges related to funding persist.