Netflix, the global leader in online video streaming services, is experiencing a decline in its user base as its Korean original content continues to underperform expectations. (Image courtesy of Netflix)
SEOUL, Aug. 20 (Korea Bizwire) – Netflix, the global leader in online video streaming services, is experiencing a decline in its user base as its Korean original content continues to underperform expectations.
Industry watchers are now looking to upcoming releases, including the highly anticipated second season of “Squid Game” set to premiere in December, to see if they can reverse this trend.
According to industry sources, Korean original series on Netflix have topped the global weekly viewing charts only seven times since the beginning of this year through August 11.
“Parasyte: The Grey” claimed the top spot twice, while “The Good Bad Mother,” “Mask Girl,” “Physical: 100″ Season 2, “The 8 Show,” and “Hierarchy” each secured the number one position for a week.
This performance pales in comparison to the phenomenal success of “Squid Game” Season 1 in 2021, “All of Us Are Dead,” which held the top spot for five consecutive weeks in 2022, and “The Glory,” which dominated the charts for five weeks from late 2022 to early 2023.
The lack of buzz-worthy content is also evident. According to Good Data Corporation, which releases weekly popularity rankings, none of Netflix’s original Korean series have managed to clinch the top spot in terms of buzz this year.
Netflix original series (Image courtesy of Netflix)
This slump appears to be directly linked to Netflix’s declining user numbers. Original content plays a crucial role in acquiring and retaining subscribers, as it is exclusively available on the platform.
Mobile Index, an app analysis service, reports that Netflix’s monthly active users (MAU) in Korea dropped to 10.96 million by the end of June, a 16% decrease from 13.06 million in December of last year.
In a surprising turn of events, TVING, a local streaming service, surpassed Netflix in daily viewing time on May 28, the day the final episode of the popular tvN drama “Marry My Husband” was released.
TVING recorded 2.5 million hours of viewing time on its mobile app, compared to Netflix’s 2.41 million hours, marking the first time TVING has outperformed Netflix in this metric.
Professor Lim Jung-soo of Seoul Women’s University’s Department of Media and Communication attributes Netflix’s investment in original content to the general principle that exclusive and unreleased works are more advantageous in securing and retaining subscribers.
Critics point to various reasons for the underperformance of Netflix’s original content. Some argue that recent productions have prioritized visual effects and genre thrills at the expense of compelling narratives.
High-profile releases like “Chicken Nugget,” “Gyeongseong Creature” Season 1, and “Sweet Home” Season 3 featured star-studded casts and impressive computer graphics but failed to meet expectations due to weak storytelling.
There’s also concern about an overreliance on certain genres, particularly crime thrillers and monster (creature) stories, which may be leading to viewer fatigue.
Won Soon-woo, CEO of Good Data Corporation, notes that while crime thrillers centered around “Squid Game” in 2021 garnered significant attention, their appeal has been declining year by year.
He suggests that audience demand for heavy, dark, and violent genre pieces has decreased, and viewers have become accustomed to these types of shows, making it difficult for Netflix to recreate the novel and shocking impact it achieved in 2021-2022.
However, Netflix still has several highly anticipated projects in the pipeline that could potentially turn the tide. The most eagerly awaited is “Squid Game” Season 2, scheduled for release on December 26. All eyes are on whether it can replicate the record-breaking success of its predecessor.
Lina Jang (linajang@koreabizwire.com)
