Netflix, the global streaming giant, has significantly impacted the South Korean media industry. While it has brought some of South Korea’s best works to a global audience, such as Squid Game, Hellbound, and Vincenzo, it has also triggered a crisis in the domestic media industry. As industry insiders voice their concerns, it’s clear that Netflix’s influence is a major factor in this upheaval.
Netflix Domination
Netflix has led enormous production budgets for their works. However, the rise of their domination led to a sharp decline in the number of dramas being made. This situation has created a challenging environment for famous actors and actresses, who now struggle to find roles as opportunities become scarce. In an interview on YouTube, actress Kim Ha Neul shared her experience, stating that receiving a script has become incredibly valuable. In the past, Kim Ha Neul had to beg others to let her rest due to the volume of projects she received. Now, she’s also in high competition for work, making a role precious.
Industry experts cited that this was the worst situation in ten years, mostly due to the influence of Netflix. Even actress Go Hyun-Jung echoed these sentiments, stating she’s not getting any offers to appear in projects. She now struggles and would even accept a pay cut. Despite generating interest with a global audience, the film and drama industry continues to shelve films and dramas, as many of these completed works lack distribution in cinemas and through OTT platforms such as Netflix. Shelving works led to a notable increase in unrecovered investments and a halt in new funding. The downturn strikes the domain of low-budget and independent films.
Industry Reports
According to a report by Herald Economy, the industry predicted that the number of dramas produced will decrease. From 135 dramas in 2022 to 125 dramas in 2023, this year, 2024, only produced less than 100 dramas. The film industry also suffers, as the report indicated that over 100 completed films now sit in storage due to its inability to secure screenings. The report also narrated that in 2023, the domestic broadcasting revenue decreased by 4.7% compared to 2022.
It is the first decline in a decade, which fell to a staggering 1.897 trillion KRW, or $1.4 billion. The report also detailed that terrestrial TV revenue dropped by 10.2%, cable TV by 3.9%, satellite broadcasting by 2.7%, and general program providers by 7.7%. The domestic broadcasting market is recording negative growth for the first time in a decade. Broadcasters, actors, and actresses feel the lack of jobs and high competition for roles and screening.
A Pessimistic Outlook
The Korean Society for Journalism and Communication Studies, the Korean Broadcasting Society, and the Korean Media Policy Society held a joint seminar on the topic, “Causes of the Broadcasting Market Crisis and Measures to Overcome It,” which they held on September 26 and 27. Professor Lee Heon-Yeol of Korea University diagnosed the domestic media market as being in a 911 situation. Due to the enormous production costs raised by global OTTs such as Netflix, broadcasters have no choice but not to produce content, leading to fewer dramas and fewer jobs for actors. This also shuts the window for new talents to emerge.
Global OTTs, such as Netflix, select only a small number of actors, and only a small number of the once-thriving industry are making money out of it. Professor Lee Sang-Won of Kyunghee University also expressed that due to Netflix’s influence, broadcasting revenues are plummeting, content production costs are increasing, and the broadcasting ecosystem is collapsing. In turn, this is leading to a talent crisis in the country.
Final Thoughts
Despite OTT platforms such as Netflix being the bridge for global content, its domination in the field is leading to a collapse, and we’re seeing it with our own eyes as it happens in South Korea. Drama production continues to decrease, and if not halted, this could lead to an industry crisis and a Korean Wave crisis. Experts emphasize that resolving this is urgent. They demand that local regulations be relaxed and that Netflix and other global streaming platforms be held accountable to achieve a regulatory balance.
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