Why are Korean Dramas all facing Netflix?
In the New Normal, the trend of rising OTT subscribers including Netflix, Hulu, HBO Max seems to continue.
Along with this trend, another big shift has taken place on Netflix, one of the major streaming players. The shift is that Korean dramas started to be distributed to Netflix at the same time that they are being broadcasted in Korea.
< Kingdom 1,2 >, < Crash Landing on you > and < Itaewon Class > are all Korean dramas sponsored by Netflix or produced directly as the original content of Netflix.
There has recently been a new wave in which Korean dramas have increasingly been produced and distributed through the investment of Netflix. Netflix invests in Korean content by dividing it into the 'pre-production stage,' 'production stage' and 'post-production stage.' <When the Camellia Blooms> is a drama produced by KBS(A major broadcaster in Korea) but is shown as "Netflix Original" overseas. This is also the product of Netflix's active investment. If the current ratio of Netflix's investment in Korean content continues, Netflix's investment in Korean drama content is expected to be around USD 1 billion in 2025.
As Korean drama productions receive investment from Netflix, they can gain the benefit of spreading their work overseas and securing stable investment in production. Accordingly, experts projected that Korean drama producers willing to receive investment from Netflix will increase further.
Apart from the optimistic side of Netflix's investment in Korean content, there is a crucial point that Netflix is reluctant to share the IP, which is the intellectual property right of the work. Also, another problem is that the number of Korean drama content created in the form of Netflix outsourcing is consistently growing. This becomes a problem because Korean content produced in the form of outsourcing might not be distributed in Korea, depending on the planning purpose of Netflix. As a result, it appears that Korean content creators would need to collaborate with different global OTT providers other than Netflix in order to disperse the existing reliance on Netflix.