South Korean Paid-for Online Video Market to Triple by 2021
STATSBOX South korea POPULAT ION 51.3 million TOTA L HOUSEHOLDS 19.6 million TV HOUSEHOLDS 19.5 million PAY-TV SUBSCRIBERS 31.0 million PAY TV PENETRAT ION 99.8% DIGITA L PAY TV SUBSCRIIBERS 25.2 million TOTA L BROADBAND SUBSCRIBERS 92.7 million FIXED BROADBAND SUBSCRIBERS 19.9 million WIRELESS BROADBAND SUBSCRIBERS 72.9 million FIXED BROADBAND PENETRAT ION 102.7% WIRELESS BROADBAND PENETRAT ION 140.7% * Source of Information: Media Partners Asia
The South Korean paidfor online video market is forecast to more than triple to $433 million in 2021 from $142 million in 2016, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions. The market is one of the biggest in Asia, with an annual average revenue per user at $97 for it subscription service in 2016,compared to $103 in Japan and just $31 in China.
“South Korean consumers are more willing to pay for premium content now, and most of them will have multiple streaming subscriptions in the future,” said Jun Wen Woo, analyst at IHS Markit. “High smartphone adoption, availability of low-priced subscription services, as well as the entrance of new local and international services, will also contribute to the growth of the market.”
The paid-for online video market in South Korea includes subscription and transactional business models. POOQ and TV are two of the most notable online video subscription services in terms of the number of subscribers, while Google Play Movies dominates the transactional business holding more than two thirds of market share in terms of revenue. South Korea is one of the few markets in the world where Apple iTunes Store is not available.
With the increasing popularity of watching video on smartphones and tablet PCs, pay TV providers, such as KT, SK Telecom and LG Uplus, mediacompany CJ E&M, and three major broadcasters have expanded their businesses into digital.
But content production across platforms has surged over the years with foreign broadcasters collaborating with local players for exclusive content. PCCW and Netflix are two active players in this area.
Netflix has signed an exclusive international licensing agreement with JTBC, a South Korean nationwide general cable TV and broadcasting company, for the network’s new Friday/Saturday TV series MAN xMAN made its debut on 21 April 2017.
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