The South Korean office of the global streaming giant Netflix is shown in this photo taken on Dec. 16, 2022. (Yonhap)
SEOUL, May 31 (Korea Bizwire) – As competition in South Korea’s streaming industry intensifies, streaming platforms are grappling with losses, while Netflix is anticipated to generate substantial profits this year.
According to data from industry tracker WiseApp, the number of people who installed South Korean streaming apps reached 30.1 million as of April this year, representing a meager 1 percent increase from the previous year.
Netflix dominated the monthly active user chart with 11.6 million individuals, boasting a usage rate of 63.6 percent, which is nearly equivalent to the combined user base of all local streaming platforms (12.6 million people), including Tving, Wavve, and Watcha.
Nonetheless, South Korean streaming platforms continue to prioritize investment in content creation to avoid falling further behind their competitors.
In contrast, Netflix enjoys a stronger financial position and a larger subscriber base. The company introduced an ad-supported plan last year and plans to implement an account-sharing ban this year.
Industry sources predict that Netflix will generate annual revenue ranging from 268.7-371.6 billion won (US$202-280 million) for the next three to five years through ad sales alone.
The situation is much bleaker for domestic streaming platforms. Tving, Wavve, and Watcha incurred operating losses of 119.1 billion won, 121.3 billion won, and 55.5 billion won, respectively, last year.
These three companies are projected to continue operating at a loss this year and are expected to sustain ongoing deficits.
Kevin Lee (kevinlee@koreabizwire.com)
