Global Success of Netflix with Korean Contents

Abstract

The Korean Wave has been present in Taiwan for over 20 years, permeating various sectors including dramas, K-POP, movies, Korean cuisine, video games, fashion, and cosmetics. Its influence is not just limited to Asia; Korean content products are now recognized globally. Previously, the success of Korean content in European and American markets was facilitated by concerted efforts from both the industry and the government. However, in recent years, particularly during the pandemic, the robust involvement of the streaming platform Netflix, exemplified by the global sensation Squid Game, has intensified the world's fascination with Korea. Netflix serves as an optimal tool for the dissemination of film and media culture. While Netflix's support has undoubtedly been beneficial for Korea, it has also raised concerns regarding their investment strategies and the challenges they pose to Korea, such as intellectual property (IP) issues, monopolistic control over broadcasting rights, localization strategies, diversification of production formats, revenue sharing with telecommunication operators, and the survival of domestic over-the-top (OTT) media service platforms. In response, both the industry and government have initiated measures such as government subsidies for OTTs, tax reductions, levies on Netflix's use of the internet, standardized contracts, and the active cultivation of creative talent. Additionally, industry efforts include mergers, fostering alliances to expand capital, and ensuring the production and circulation of quality content. This paper will comprehensively organize and analyze data from official Korean sources, academic papers, and field studies conducted by the author, to explore the competitive and cooperative issues between Korean OTT platforms and Netflix, and to identify viable responses. The analysis will cover three main aspects: (a) Netflix's investments in Korea and the challenges they present to the country; (b) the Korean government's response policies; and (c) the current situation and potential improvements for local Korean OTT platforms.