Review on Netflix’s Launch in South Korea — Why I can’t chill just yet
Netflix has finally launched its service in South Korea on January 7th, 2016. Ever since Gregory Peters, International Development Officer, announced the official expansion into the new market in BCWW 2015, the industry has been shedding light on which partner the video streaming leader will work with in order to source contents stably.
Working in the same field, when it unveiled its library I was not surprised by the number of local shows. There were only a few dozens of Korean dramas and movies, and most of them were outdated. There was a rumor citing anonymous comment from one of the network provider executives that Netflix required high stake in the revenue ratio and the counterparts simply could not accept such deal. I assume they will continue the negotiation until they find a middle ground.
In fact, what shocked me the most was its lack of American TV shows. I am a huge “Meede(shortened for translation of American TV drama)” fan and yes, my standards can be quite high. But isn’t it the whole point? The edge of Netflix, from my perspective, is that it can suit the needs of Meede fans who were once outcasts, otakus and minority with high willingness to pay. I have been spending 20–30 dollars for a season pass on iTunes for numerous shows such as my all-time favorite <The Good Wife>, Shonda Rhimes’ <How to Get Away with Murder>, <New Girl> and <Empire>, since I started work and owned an iPad Mini. At the same time, my computer stopped functioning properly and the illegal websites in my bookmarks were shut down. It was time-consuming job to find new route to access these contents and being a legit user was very fulfilling.
This led to me think in their shoes; despite avid Meede fans’ disappointment and major audience who are used to seeing Korean contents easily using KT’s Olleh service, Netflix took that one step and opened with what they had at hand. For instance, <House of Cards> was not included in the initial list. A shocker. Why? Because it already entered exclusive agreement with aforementioned Korean IPTV provider.
#In contents license business, demand and supply rule applies like any other goods and commodities market. Buyers will fight over a killer content and increase the overall market price. Content providers can divide and sell different license according to the characteristics of potential platform (TV station, IPTV, DVD or VOD service provider), exclusivity and country. Usually this contract will mention specific period so that when exclusive period is over, sellers can enter another contract with non-exclusive condition.
Another obstacle besides this is lead time to translate subtitles. What allows me to watch Meede almost simultaneously is because I speak the language and do not need Korean subtitles. For major audience, well-translated subtitle is key in servicing foreign contents, which will require platform to hire professional translation company or multiple of them to set timeline for each content’s release. (Wait, if I were them I would show my valuable assets first to grab attention. Does this mean I have seen the best already? Please no!)
This means Netflix is planning more contents for the future for sure. In case of Korean shows, it will seek every possible ways to pour in more full-length episodes during the first free trial month to make people stay. It is only a matter of time that they will turn to growing Korean web-drama market, if negotiation with the big guys is stalled. Most of them are now serviced on Naver TVcast with revenue sharing model and some recorded impressive playviews, but they have more potential if they were to meet wider range of audience.
Let’s see how the cord-cutting business will add more shows to their list. Will it hold sway over Korean content industry or change the paradigm? As a Meede fan, I am looking forward to “Netflix and chill” soon.
