In this photo taken on October 7, 2021, a large digital screen on a building displays the logo of Netflix, producers of the South Korean hit series "Squid Game", beyond a South Korean flag hoisted above a pavement in Seoul.
Netflix has revealed a $2.5 billion investment in South Korean TV productions, movies, and reality shows over the next four years.
In a meeting with South Korean President Yoon Suk Yeol, who is in the US on a state visit, Netflix co-CEO Ted Sarandos made the announcement.
Increased Spending
According to Sarandos, Netflix has doubled its investment in South Korea to $2.5 billion since launching there in 2016. With dramas like Squid Game and The Glory, and increasingly unscripted programs like Physical 100, Netflix has found success on both the domestic and foreign fronts.
In a report by Deadline, Sarandos said that the choice was made because of his faith in the continued excellence of Korea's creative sector. He added that because of the President's deep affection for and unwavering backing of Korea's thriving entertainment sector, the company was likewise motivated to help spread the Korean wave.
"It is incredible that the love towards Korean shows has led to a wider interest in Korea, thanks to the Korean creators' compelling stories. Their stories are now at the heart of the global cultural zeitgeist ... I have no doubt our investment will strengthen our long-term partnership with Korea and Korea's creative ecosystem," Sarandos stated.
Yoon reportedly expressed his approval of the investment and called it a huge opportunity for both South Korean content providers and Netflix in the local Korean press.
Netflix's chief content officer Bela Bajaria, as well as the vice president of content for Asia Pacific (excluding India), Minyoung Kim, and vice president of Korean content, Kang Dong-han, were present at the Washington conference.
K-Wave Rise
Netflix's increased investment comes as Disney+ and Apple TV+, two other major worldwide competitors, are vying for viewers' attention by offering larger Korean content libraries. In an effort to get more users, Netflix has also lowered costs in tens of nations.
Variety reported that Korean streaming operators like Tving (backed by CJ ENM, tech giant Naver, and broadcaster-producer JTBC) and Wavve (owned by KBS, MBC, SBS, and SK Telecom) are also looking to capitalize on the Korean wave locally and abroad.
Amid skyrocketing consumer demand for media, Korean production studios have grown to provide it. As part of its global development of Korean content, CJ ENM has formed a third production business, and JTBC Studios rebranded itself as Studio Lululala a year ago.
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Crackdown on Password Sharing
With last week's announcement, Netflix is entering a new era that it would begin charging an additional cost for password sharing with persons who do not live in the same household as the subscriber.
After testing its account-sharing pricing in Latin America in 2022, the business has decided to restrict the number of individuals who may share their accounts. In February, Netflix officials rolled out the new policy to four countries, including Canada and Spain.
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