Netflix announced on Tuesday (25) that it will invest $2.5 billion in South Korea over the next four years with the aim of producing more Korean content for the platform. The value injection points out that the company is doubling its investment in the market since its last application, in 2016.
- The announcement follows a meeting between South Korean President Yoon Suk Yeol and Netflix Co-CEO Ted Sarandos;
- Yoon called the investment a “great opportunity” for South Korea’s content industry;
- The investment comes as the country plans to increase its exports and cultural influence.
Known as the “Korean wave” or Hallyu, South Korea’s entertainment industry has experienced a global boom for a few years now. According to Reuters, the arrival of K-pop groups like BTS and Blackpink gave the country more visibility, leveraging the market.
In addition, the success of Round 6 (Squid Game), released in 2021, culminated in even more avenues for growth. The series remains Netflix’s most-watched series of all time, having amassed 1.65 billion hours of streaming in its first 28 days.
We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories.
Netflix CEO Ted Sarandos.
It is worth remembering that Netflix has many other successful Korean series and films, as is the case, for example, with In Search of Glory and All of Us Are Dead — the latter became the second most watched Korean production after Round 6.
According to Korean government data, in 2021, content exports such as music, video games, and movies reached a record US$ 12.4 billion, surpassing the export volume of home appliances and rechargeable batteries.
After the announcement of Netflix’s new investment, shares of entertainment companies in South Korea rose on Tuesday.
With information from Reuters