Netflix is betting big on South Korea after the “Squid Game” success in 2021. The U.S. streaming giant announced Tuesday that it would invest $2.5 billion in South Korea over four years to develop TV episodes, movies, and reality shows for Korean fans and export worldwide.
In Washington, Netflix co-CEO Ted Sarandos met with South Korean President Yoon SukYeol, who is officially visiting the U.S.
“We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories,” Sarandos said in a speech Monday. “The President’s love and strong support for the Korean entertainment industry and fueling the Korean wave inspired us.”
South Korean music, cinema, and TV are popular abroad. Squid Game was Netflix’s most successful original series, drawing views from 142 million homes worldwide two years after its release.
Netflix was sued by one of Korea’s largest internet providers for the show’s traffic increase and related costs. “Squid Game” is not the only global TV show. “The Glory” and “Physical: 100” are others.
Netflix’s VP of Public Policy, Dean Garfield, said in Seoul in 2021 that Netflix has released more than 80 Korean films and shows and “spent about $700 million on Korean content” between 2015 and 2020. Netflix’s four-year budget will increase to $625 million if the $2.5 billion promise is fulfilled. In addition, the U.S. streaming giant invested $500 million in South Korean film and TV production in 2021.
As it does everywhere, Netflix competes with Amazon, Disney, Hulu, Apple TV, and many regional businesses in Asia.
Netflix’s move to original content coincides with its competitors stealing properties to enhance their services. To attract more people, Netflix has increased its focus on original content and other methods, such as ad-supported free usage and game launches.
The ad-supported tier attracts users with free services and generates income from ad sales. Last November, the firm launched Basic with Ad services in the U.S., Europe (U.K., France, Germany, Italy), and Asia (Japan, Australia, and South Korea).
Netflix offers incentives and sticks to boost revenue and profit margins. For example, Netflix announced last week it would tighten down on password sharing in the coming months.
