YouTube, K-Pop drive South Korean streaming surge | Media Analysis | Business | News | Rapid TV News
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Online video streaming minutes in South Korea reached 169 billion in the second quarter of 2021, with streaming video-on-demand (SVOD) platforms capturing a 13% share, according to the first of a series of quarterly reports from Media Partners Asia (MPA).
MPA horea streaming 6 July 2021
The report, South Korea Online Video Consumer Insights & Analytic, measured the Korean streaming economy and found that YouTube leads the country’s online video streaming industry capturing 81% of total minutes streamed in Q2 2021. K-Pop was found to be a major driving force, with official music videos and performances leading traffic, along with user-generated ‘fan-cam’ footage which are widely shared. TikTok, which is eating into YouTube’s share in much of Southeast Asia, has yet to take off in South Korea, with Gen Z audiences opting for the AfreecaTV local live streaming platform.

SVOD platforms formed the second-largest segment, not surprisingly led by Netflix – which took a 5% share of total streaming minutes. More than half of Netflix’s streamed minutes in Q2 2021 was driven by Korean content. There were also noticeable contributions to the market from Wavve and TVing. The report indicated that the SVOD online video reached 10 million cumulative SVOD subscribers at the end of the Q2 2021 period with Netflix, Wavve and TVing commanding an aggregate 80% share.

MPA noted that more competition and category expansion is on its way with the launch of the Disney+ direct-to-consumer service in Q4 2021. Netflix and YouTube also emerged leaders in a measure of customer satisfaction among paying VOD users using Net Promoter Scores.

Acquired Korean dramas, including titles from Netflix’s output deals with Studio Dragon and JTBC Studios, have been a hit across age and gender demographics in Korea. Wavve, owned by SKT and the three major terrestrial broadcasters (KBS, SBS and MBC), uses FTA, original and Hollywood content, and accounted for 4% of total video streaming. Select SBS dramas and Wavve originals were breakout hits in Q2, driving significant consumption. TVING, with 2% share of total video streaming, enjoyed an uptick in consumption from its exclusive streaming broadcast of Euro 2020 matches and inclusion in Naver’s Plus membership.

In terms of the value of the market, MPA calculated in the South Korea Online Video Consumer Insights & Analytic, that online video content investment would likely top US$1 billion in the 2020 calendar year with the majority directed towards driving customer acquisition and retention.