Abstract
ABSTRACT After Netflix launched its OTT service in Korea, the competitive dynamics of Korean OTT industry has been significantly changed. This paper analyses the changes caused by Netflix. We proposed two possible hypotheses. First, we hypothesized that if more competitors enter an industry, then the bargaining power of the supplier will increase, ceteris paribus. Our second hypothesis is if most of the new entrants are powerful companies controlling huge resources, then supplier’s bargaining power may be limited even though the number of its downstream customers is increased. A detailed analysis of Korean OTT market was performed in this paper and it concludes that the second hypothesis is in line with Korean OTT market. Keywords OTT, Netflix, Supplier Bargaining Power
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