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.
Author:Alex MercerReviewer:Nathanial BlackwoodJun 23, 20232.5K Shares171.8K 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 $2.5 Billion Korean Investment
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.
Conclusion
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.
Alex Mercer
Author
Alex Mercer is a seasoned author and analyst specializing in wealth research, with a keen focus on evaluating the net worth of individuals across various industries. With over a decade of experience in financial analysis and wealth assessment, Alex has developed a nuanced understanding of the factors that contribute to an individual's financial status, from investments and assets to market trends and economic policies. His work involves in-depth reviews and analyses, providing insightful observations on wealth accumulation, management strategies, and the socio-economic implications of wealth distribution.
Throughout his career, Alex has become known for his ability to distill complex financial data into understandable and engaging narratives, making the subject of wealth and net worth accessible to a broad audience. His expertise is not just in numbers but in telling the stories behind them, highlighting the journeys, strategies, and decisions that lead to financial success or challenges. Alex's contributions to the field of wealth research are valuable resources for anyone looking to understand the dynamics of wealth in today's world, offering a unique perspective that bridges the gap between financial analysis and human interest.
Nathanial Blackwood
Reviewer
Nathanial (Nate) Blackwood is a distinguished financial journalist with a decade of experience in net worth analysis. He holds an Economics degree from the University of Finance and a Data Analysis certification, enabling him to blend thorough insights with engaging storytelling. Nate is known for making complex financial information accessible to a wide audience, earning acclaim for his precise and reader-friendly analyses. Beyond his writing, Nate is dedicated to financial literacy, actively participating in educational forums and workshops.
He is the founder of PureNetWealth, a platform that demystifies the financial achievements of public figures by exploring the strategies and decisions behind their fortunes. Nate's work bridges the gap between intricate economic concepts and the general public, inspiring a deeper understanding of wealth dynamics. Follow Nathanial Blackwood for essential insights into the financial narratives shaping our world.
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