On September 2, Netflix hosted an event at the Grand Hyatt Seoul in Yongsan District, inviting more than 500 major domestic advertisers to introduce its proprietary advertising platform, “Netflix Ads Suite.” (Image courtesy of Netflix)
SEOUL, Oct. 9 (Korea Bizwire) — South Korea’s streaming industry is rapidly embracing ad-supported subscription models, reshaping the country’s online video landscape and fueling a new surge in digital advertising.
Once defined by ad-free viewing, online video platforms—or OTT (over-the-top) services—have increasingly adopted hybrid plans offering lower fees in exchange for ads. The trend began globally in November 2022 when Netflix introduced its discounted, ad-supported tier.
Domestic platforms soon followed, led by Tving, which launched Korea’s first ad-based plan in March 2024, and Coupang Play, which opened its content to free users with ads in June. Wavve, now pursuing a merger with Tving, rolled out its own ad tier this month, including bundled options with Tving.
Early skepticism among viewers has since shifted toward acceptance. In 2023, only 25.5 percent of respondents in an Open Survey study said they were willing to tolerate ads for cheaper streaming, while 32 percent said they opposed them outright.
But by mid-2025, a report from KT subsidiary Nasmedia found that 85.2 percent of Netflix and Tving ad-tier users wished to keep their current plans, showing a sharp rise in consumer approval.
Subscriber data underscores the shift. At Tving, ad-tier users accounted for 39.2 percent of total subscribers in the first quarter of 2025, up from 14.4 percent a year earlier. Globally, Netflix’s ad-supported monthly active users surged from 5 million in May 2023 to 94 million by May 2025—a 19-fold increase.
Streaming services are now aggressively courting advertisers. In September, Netflix hosted over 500 major advertisers in Seoul to present its “Netflix Ads Suite,” while Tving and Wavve jointly held the “New Wave 2025” showcase to promote their expanded digital ad ecosystems.
Industry analysts say ad-supported plans are poised for continued growth as consumers seek more affordable viewing options and advertisers respond to improved engagement metrics.
“Ad-tier subscriptions are rising steadily thanks to lower costs, bundled discounts, and positive user experiences,” Nasmedia said in its latest report. “With expanding ad inventory and improving perceptions of OTT advertising, a favorable market environment is taking shape.”
Ashley Song (ashley@koreabizwire.com)
