Netflix $2.5 Billion Korean Investment - Wll Not Exploit Korean Filmmakers
Netflix $2.5 billion Korean investment is an "opportunity" for local businesses, the company's CEO said Thursday, downplaying a fight with local internet companies over network usage.
James K.Jun 23, 20231396 Shares93048 Views
Netflix $2.5 billion Korean investmentis an "opportunity" for local businesses, the company's CEO said Thursday, downplaying a fight with local internet companies over network usage.
During a three-day trip to Seoul, Netflix co-CEO Ted Sarandos said that the streaming service pays creators fairly and helps develop new talent. This was in response to calls from some local politiciansand industry leaders for more profit-sharing with creators.
South Korea is one of Netflix's biggest sources of TV shows and movies, and CEO Ted Sarandos said the company was "investing for the long term" in the country. South Korea gave Netflix hits like Squid Game and The Glory, which were watched all over the world.
Netflix investing in more original content from South Korea
Ted Sarandos, who is co-CEO of Netflix, is in Seoul to talk about the company's $2.5 billion investment in South Korea, meet with production partners like Park Chan-wook, and talk about how the investment will affect the economy.
At an event today (June 22) at the Four Seasons Hotel in Seoul, where production partners and the press were present, an executive from a streaming giant said:
Over the next four years, we will invest $2.5bn in Korea. That’s roughly twice as much as we’ve invested since we first launched our service here in 2016. And it includes funding for training programs for the next generation of creators in front of and behind the camera.- Ted Sarandos
Sarandos praised the "amazing partnership between the Korean creative community and Netflix"when he talked about how the $2.5 billion that was announced in April in Washington while Korean President Yoon Suk Yeol was there on a state visit would be spent. He said, promising to put a lot of money into training South Korea's next crop of storytellers and increase funding for original shows:
But I believe we're just scratching the surface of what's possible,- Ted Sarandos
We have to invest in their talent collectively as an industry. Between 2022 and 2025, for example, one in five Netflix titles in Korea will have come from a first-time writer or director.- Ted Sarandos
But South Korea's service providers say that Netflix, which came to the country in 2016, is using their networks for free and only paying the usual rate, even though it has caused a lot of traffic.
But local politicians have been worried about Netflix's growing power in the local entertainment business. After Squid Game became popular, people asked about how Netflix splits profits with local producers. More recently, Netflix's tax contributions and views on network usage fees have become hot topics.
Last week, the Korean government said it was going to give $390 million (500 billion KRW) to help local streaming platforms compete with global streaming services like Netflix as production costs rise. In the last few years, South Korean entertainment has taken the world by storm. According to business data, more than 60% of viewers watch South Korean dramas on Netflix.
Netflix put more than 1 trillion won ($750 million) into making Korean material from 2015 to 2021. The company had said before that it would make more South Korean dramas.
Sarandos said at the press conference that about 60% of Netflix users around the world have watched Korean content and that 90% of Korean romance titles are now watched outside of Korea. In 2021, Squid Game, which was made in South Korea, became Netflix's most-watched show ever. In the first 28 days after it came out, 111 million people streamed it.
The show is about people with a lot of debt who play South Korean children's games with a dangerous twist to win a lot of money. Earlier this year, Physical 100, a South Korean reality show, became the most-watched non-English language show in the world on YouTube.
Netflix is available in more than 190 countries, and it now has more streaming competitors like Amazon, HBO, and Disney. In order to get more people to sign up, it has cut prices in tens of countries around the world. The company said last week that the long-awaited crackdown on sharing passwords will start in the coming months. This means that subscribers will have to pay more if they want to share their accounts with people outside of their homes.
Ted Sarandos, the CEO of the streaming giant Netflix, said after meeting with South Korea's President Yoon Suk Yeol in Washington that the company plans to spend $2.5 billion on South Korea's entertainment content over the next four years.
In recent years, South Korea has become more of a cultural powerhouse around the world. This is especially true because of the huge success of "Squid Game" on Netflix and "Parasite," which won an Oscar. Sarandos also said that Netflix was working with the Korea Radio Promotion Association to help talented young people get experience in the production business.