Netflix (NASDAQ:NFLX) is poised to premiere the third and concluding season of Squid Game on June 27. The series, which captivated global audiences with its intense survival drama, concludes as the streamer’s most-watched show ever. However, Netflix isn’t showing signs of retreating from its investment in Korean content. Recognizing the burgeoning popularity of Korean dramas, films, and reality shows, the platform is doubling down, focusing on South Korea as a strategic hub for new streaming successes.
Since its debut, Squid Game has achieved unprecedented success, amassing billions of viewed hours and becoming a cultural phenomenon. This success mirrors Netflix’s growing investments in Korean productions, which have expanded beyond dramas to include animated feature films like Lost in Starlight. The latter, hailed for its ethereal visuals and compelling narrative, received acclaim and resonated with viewers worldwide. Such varied offerings suggest an evolving strategy aimed at diversifying content and attracting a broader audience.
How is Korean Content Boosting Netflix’s Revenue?
Korean TV series significantly bolster Netflix’s revenue. Over $8 billion in global streaming revenue has been generated since 2020, largely due to the commercial success of Korean titles. The popularity of such shows illustrates that Netflix’s investment in local content can transcend geographical boundaries and appeal to a global viewership.
Why Is South Korea Central to Netflix’s Strategy?
The widespread appeal of South Korean shows and films serves dual purposes for Netflix. These productions not only attract substantial viewership but also enhance the platform’s competitive stance. With over 70% of Korean TV episodes extending beyond 45 minutes, viewers are encouraged to spend more time on the platform—a critical metric in maintaining viewership engagement.
Netflix’s $2.5 billion commitment to Korean content underlines its strategic gamble that Korean storytelling can drive engagement and growth. Korean viewing hours on Netflix are second only to U.S. content, revealing their pivotal role in the platform’s offerings. This commitment has helped propel Korean programs into the upper echelons of streaming content, with significant contributions to the overall viewing numbers.
The range of Korean content, from reality shows like Single’s Inferno to beloved older series such as Crash Landing on You, showcases the versatility and long-lasting appeal of such programs. These varied genres keep a wide demographic engaged and provide Netflix with a rich library of compelling content.
The conclusion of Squid Game marks the end of an era for Netflix, while also highlighting the significance of Korean productions on the global stage. As audiences anticipate what’s next, Netflix’s commitment underscores Korean content’s role in its broader strategy.
