Netflix wants you to watch more Korean drivers

Between 2015 and 2020, Netflix spent approximately $ 700 million on Korean content, both licensing outside titles and making about 80 original films and TV series.

That includes a three-year partnership with one of South Korea’s leading entertainment companies, CJ ENM Co., as well as the production subsidiary Studio Dragon Corp. The deal has already produced hits like “Sweet Home,” an apocalyptic suspense series. More than 22 million Netflix member homes have been watched after its December debut, Netflix said last month, making it one of the most popular shows from Korea made by Los Gatos, a company based in Calif..

“Our commitment to Korea is strong. We will continue to invest and collaborate with Korean storytellers across a wealth of genres and forms, ”Netflix co-chief executive Ted Sarandos said in an online news conference on Thursday.

As U.S. subscriber growth has slowed in recent years, Netflix has been spending heavily on overseas original content, as the pandemic keeps people at home. and demand building. The service surpassed the 200 million membership mark at the end of 2020 and much of that growth came from overseas. In the last three months of 2020, Netflix invested two million subscribers in Asia, as well as 4.5 million in Europe, the Middle East and Africa – compared to 860,000 in the US and Canada.

Part of the impetus for Netflix’s global investment comes from increased competition in the U.S. from new services including Disney + Walt Disney Co. In its latest letter to shareholders, Netflix cited its new competitors as a key reason for “why we have moved so fast to grow and strengthen our original content library across a range of genres and nations. ”

In addition to South Korea, Netflix is ​​looking to promote local content in Europe, the Middle East and Africa. The company has also made a major investment in India, spending $ 400 million on local content in 2019 and 2020. Netflix plans to announce a major programming commitment for Indian content as well next month, someone told is familiar with the matter.

In Japan, Netflix has been investing in local anime movies, which are gaining a wider fan base across the globe. Netflix said last year that it had 16 anime projects in the works with a Tokyo-based anime production hub. Two of these projects have been announced to date.

Global streaming services like Netflix, HBO Max, Hulu and Amazon Prime have created a paradigm shift in how content is viewed and valued, said John Penotti, co-executive at SK Global Entertainment in Santa Monica, Calif., Made the 2018 box office hit “Crazy Rich Asians.” Mr. Penotti is working with Netflix on a project about the 2018 Thailand cave rescue of a youth football team.

“We are moving to this side where the technical capabilities of these platforms have allowed viewers to appreciate around the world” culture-specific performances, Mr Penotti said.

Approximately 3.8 million South Korean households subscribe to Netflix, according to the company. Monthly special viewership rose 64% in November compared to the beginning of 2020, according to a Nielsen Korea report, published last week.

In South Korea, Netflix has so far relied heavily on both original and licensed content for woo viewers. The popular South Korean series on Netflix has featured a huge selection of allowed content such as the hilarious inter-Korean romance drama “Crash Landing on You,” featuring South Korean A-list actors Son Ye-jin and Hyun Bin, and “Sky Castle,” a series that reflects the country’s private education frenzy.

But the investment in South Korea’s entertainment industry serves goals to attract viewers around the world as well. The country has for decades developed a pipeline of export pop culture – known as “hallyu” or Korean Wave – initially spread across Asia but a few years ago they found a more global market.

“Audiences around the world are falling in love with Korean stories, artists and culture,” said Minyoung Kim, vice president of Netflix content for Korea, Southeast Asia, Australia and Zealand. New, in a blog post Thursday about the new investment.

In addition to the success of “Parasite,” South Korea has thrived on its other cultural exports. The K-pop band BTS topped the US Billboard charts and received a Grammy nomination. Another group, Blackpink, was featured in a Netflix documentary and one of his famous songs recently garnered 1.5 billion views on YouTube.

At the same time, global demand for Korean content extends beyond dramas and movies to include entertainment mix and comedy shows, Shin Su-yeon, an analyst at Shinyoung Securities Co., said in a break in Seoul.

“Netflix also seems to be catching on to this growing demand for lighter entertainment,” Ms Shin said.

Write to Eun-Young Jeong at [email protected] and Joe Flint at [email protected]