The Growth of OTT Platforms' Investments in Korean Content and Opportunities for Global Expansion

Korean dramas and films have secured prominent positions as the leading genres driving the hallyu wave. This owes in part to the increase in Over-The-Top (OTT) platform users during COVID-19, when audiences worldwide watched Korean dramas and films on streaming platforms in large numbers, and multinational OTT platform companies such as Netflix, Disney+, and Apple have since made substantial investments in Korean content. As competition intensifies among OTT platforms in the market, competing firms are pursuing differentiated strategies by producing and securing their own content, flooding the market with more Korean dramas and movies. Two major platforms in the OTT market, Netflix and Disney+, in particular are investing in Korean content. Moreover, these platforms provide Korean works with subtitles and dubbing in local languages, facilitating the accessibility of Korean content in foreign markets. Investments in the production of original content by global OTT platforms are exerting a significant influence on the domestic content industry as well. Domestic firms can access production funding, produce high-quality content, have their content widely distributed, and have opportunities for international expansion. However, concerns have arisen regarding IP ownership issues. Given the overreliance on substantial investments by Netflix, there are calls within the industry to prepare for an interruption of this investment. In addition, as Netflix tends to invest in larger production companies, smaller-scale production houses are seeing fewer opportunities. Establishing criteria for securing IP rights and a stable investment system within the domestic content industry is crucial to ensuring the continued creation and global expansion of Korean content to diverse international markets.