South Korea’s streaming subscription growth is slowing dramatically

South Korea’s streaming subscription growth is slowing dramatically

After the effects of the pandemic began to fade in South Korea in the first quarter of 2021, video streaming subscription growth has slowed sharply, according to a new report from regional research firm Media Partners Asia. New subscriptions for all streaming platforms totaled just 600,000, down from 1.7 million net subscribers in Q4 2021. The country ended March 2020 with approximately $14.7 million in SVOD subscriptions.

The rapid slowdown in South Korea, reflecting the recent struggles of some streaming platforms in major Western markets, could add to recent investor concerns about the fundamentals of the director-user model, especially the growing role of Korean content. Video consumption worldwide.

“Almost 15 million. “SVOD subscriptions and top 5 brands are investing heavily in local content. The Korean SVOD industry remains healthy and competitive, but growth slowed significantly in the first quarter,” Vivek Couto, CEO of Media Partners Asia, told the report. In a post-pandemic environment, Korean consumers were drawn to linear television in the first quarter to cover major events such as the Winter Olympics in February and coverage of the Korean presidential election in March. Consumers also returned to theaters at the end of Q1 and Q2, contributing to the slower quarter for SVOD.

The report found that Korean SVOD leaders Netflix, Wavve, Tving, Coupang Play and Disney+ largely maintained their category share in Q1 2022, accounting for 86% of total SVOD subscriptions and 83% of premium video consumption.

“Netflix, Wavve, Tving and Disney all had notable first-quarter local original successes, while Coupang Play utilized major local and American football games,” added Kuto.

According to the MPA, locally produced Korean content still dominates the market, with Korean TV dramas representing 48% of total consumption, Korean varieties and reality shows representing 23%, and Korean films 4%. American series lagged behind with just 8% of viewers, while American movies were left with 5% and Japanese anime with 3%.

Source: Hollywood Reporter

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