Netflix NFLX has shown remarkable performance this year, with a 40.8% increase, while the Zacks Consumer Discretionary sector faced a slight decline of 1.2%. This surge can be attributed to the success of its international content, particularly in South Korea.
The streaming juggernaut has solidified its position as one of the premier video streaming platforms in South Korea.
Recently, the company, holding Zacks Rank #3 (Hold), revealed a partnership with director Yeon Sang-ho and writer Choi Gyu-seok to adapt another exciting comic series, Revelations, following the triumph of their thriller Hellbound. This upcoming film will revolve around a pastor and a detective, both propelled by their firm convictions.
Yeon and Choi, known for their profound exploration of existential themes in Hellbound, seek to captivate audiences again with Revelations, delving into the realms of religion, humanity, faith, and resolve. Featuring Ryu Jun-yeol as Min-chan, the pastor seeking justice, and Shin Hyun-been as Yeon-hee, the detective navigating personal challenges in her pursuit of truth, the film promises a gripping narrative.
Esteemed director Alfonso Cuarón has joined as an executive producer, enhancing the project with his expertise. Produced by WOW POINT, a global content company with active ventures in Korea, the U.S., and Japan, Revelations is poised to be a compelling and emotionally resonant film, carrying forward Yeon and Choi’s impactful storytelling legacy.
Netflix’s Market Standing Against Competition in South Korea
While Netflix continues to lead the market, it faces mounting competition from other platforms. As the market expands, NFLX must innovate and diversify its content to retain its prominent position and cater to the evolving preferences of South Korean viewers.
A recent report from the Economic Times highlights substantial growth in South Korea’s subscription video market, gaining over 700,000 subscribers in the previous quarter, surpassing a total of 19 million subscribers. This surge underscores the escalating demand for video-on-demand services in the nation.
Disney’s DIS Disney+ emerged as the fastest-growing player during this period, amassing around two million subscribers. This rapid progression showcases Disney+’s successful foray and expansion in the competitive South Korean market, driven by its vast library of popular content and strategic marketing initiatives.
Despite Disney+’s growth, Netflix and Tving maintain dominance in the market as leading platforms. Netflix, with its rich array of international and local content, upholds a solid presence and loyal subscriber base. Tving, a local service, also holds a significant market share by offering an assortment of Korean dramas, movies, and shows reflecting local preferences.
Other notable contenders in South Korea’s video-on-demand sector include Fox’s FOXA Tubi and Alphabet’s GOOGL YouTube.
Tubi boasts a collection of approximately 200 free Korean titles under its K-Drama Plus section, spanning from the late ’90s to 2023, with both subtitled and English-dubbed options. Users can create a watchlist by registering an account, and Tubi is accessible on various streaming devices, including gaming consoles and smart TVs.
Alphabet’s YouTube Red, initially launched as an ad-free subscription service in 2016, has evolved into YouTube Premium, offering an ad-free experience, background play, and downloads across its vast video library.
Upcoming Korean content from NFLX, such as You Have Done Well, Hong Rang, and Agents of Mystery, is expected to drive subscriber growth and boost the company’s revenues in the Asia-Pacific region in the upcoming quarters.
The Zacks Consensus Estimate projects NFLX’s 2024 APAC revenues to reach $4.23 billion, signifying a 12.7% year-over-year increase. The consensus earnings estimate stands at $18.31 per share, indicating a 52.2% year-over-year growth.
