As per MRFR analysis, the South Korea Video on Demand Market Size was estimated at 2.14 (USD Billion) in 2023.The South Korea Video on Demand Market Industry is expected to grow from 2.53(USD Billion) in 2024 to 15.81 (USD Billion) by 2035. The South Korea Video on Demand Market CAGR (growth rate) is expected to be around 18.126% during the forecast period (2025 - 2035).
Key South Korea Video on Demand Market Trends Highlighted
The South Korea Video on Demand market is currently experiencing a number of significant trends that are reshaping the landscape. Streaming services have become more accessible to a broader audience as a result of the significant increase in high-speed internet connectivity and smartphone penetration. In South Korea, consumers are progressively favoring on-demand content over traditional television due to their desire for personalized viewing experiences.Â
Growth has been further stimulated by the prominence of Korean films and K-dramas, as international audiences seek out uniquely South Korean content. the South Korean market offers a plethora of opportunities for exploration. Streaming platforms have been able to curate original programming and attract subscribers who prefer domestic stories as a result of the increasing momentum of local content creation.Â
Local production companies and international streaming services can form partnerships to improve the quality of their content libraries, thereby attracting a global audience. Additionally, the potential to attract new audiences can be realized by expanding into underserved regional areas through the enhancement of internet infrastructure. In recent years, services such as mobile-first platforms have emerged, which are designed to appeal to the younger demographic that predominantly consumes video on mobile devices and prefers shorter content formats.Â
The diversification of subscription models is being facilitated by the introduction of ad-supported tiers, which enable users to access content for free while engaging with advertisements. Furthermore, the viewing experience has been enhanced by technological advancements, such as improved user interfaces and AI-based recommendations, which have resulted in increased customer satisfaction and loyalty in this competitive market.
South Korea Video on Demand Market Drivers
Increasing Mobile Internet Penetration
The South Korea Video on Demand Market Industry is experiencing significant growth driven by the rapid increase in mobile internet penetration, which stands at approximately 95% in 2023. This high level of connectivity facilitates access to video content across various platforms, allowing consumers to stream their favorite shows and movies seamlessly.Â
The Ministry of Science and ICT in South Korea has fostered policies that promote 5G infrastructure development, which has the potential to enhance user experience through faster streaming speeds and better quality content delivery.With companies such as KT Corporation and SK Telecom actively rolling out 5G networks, the convenience and accessibility of Video on Demand services are set to increase, making it an attractive choice for consumers. This driver is crucial as high internet penetration rates enable a larger audience to engage with Video on Demand platforms, bolstering market growth significantly.
Rise of Original Content Production
Another prominent driver for the South Korea Video on Demand Market Industry is the recent surge in investment in original content production. Major players such as Netflix and local companies like CJ ENM are increasingly producing high-quality, localized content tailored for South Korean viewers. As of 2022, Netflix announced a commitment to invest over 500 million USD annually in Korean original content, which has resulted in a dramatic increase in viewership for both domestic and international audiences.
This strategic focus on exclusive shows and movies has created a competitive edge in the market, attracting a wider subscriber base and positioning these platforms as leaders in content innovation. Furthermore, the Korean Wave phenomenon has amplified international interest in Korean content, significantly enhancing the value proposition of Video on Demand services.
Shift in Consumer Viewing Habits
There is a noticeable shift in consumer viewing habits in South Korea, with an increasing preference for on-demand viewing over traditional television. Reports from the Korean Broadcasting System indicate that as of early 2023, over 70% of South Korean households engage in some form of video streaming service.Â
This trend has been accelerated by the COVID-19 pandemic, which forced consumers to turn to online platforms for entertainment during lockdowns.This shift is being embraced by platforms that offer tailored viewing experiences such as binge-watching capabilities and personalized recommendations, which are becoming essential features to attract subscribers. This fundamental change in how content is consumed positions the South Korea Video on Demand Market Industry for continued growth as it adapts to evolving consumer preferences.
Technological Advancements in Streaming
Technological advancements are a significant driver in the South Korea Video on Demand Market Industry. Innovations in streaming technology, including high resolution and augmented reality experiences, are changing the landscape of content delivery. Companies like Samsung Electronics are investing heavily in cutting-edge technologies such as 8K resolution and artificial intelligence for better content recommendations.Â
As of late 2022, there has been a notable increase in the adoption of smart TVs, with statistics indicating that approximately 60% of households in South Korea own smart television devices that support various streaming platforms.This technology allows for an enhanced viewing experience and supports an array of Video on Demand services, driving consumer interest and engagement in this sector. The continuous technological improvements are encouraging more users to subscribe and enjoy diverse content offerings available in the South Korean market.
Video on Demand Market Revenue Model Insights
The South Korea Video on Demand Market revenue model reveals a dynamic landscape characterized by diverse monetization strategies. The market is primarily driven by three main models: Subscription Video on Demand (SVoD), Transactional Video On Demand (TVoD), and Advertisement Based Video On Demand (AVoD). SVoD has gained significant traction, appealing to consumers with the convenience of an all-you-can-watch format, which fosters consistent revenue streams and user loyalty.Â
This segment is crucial for the market as it creates opportunities for content creators to invest in exclusive and original programming, catering to the evolving demands of South Korean viewers.On the other hand, TVoD offers a different approach, allowing users to rent or purchase content on a pay-per-view basis. This model suits consumers who prefer on-demand access without committing to long-term subscriptions, thus expanding the market's reach to various demographics. AVoD stands out by incorporating advertisements into the viewing experience while providing free content to users. This model caters to budget-conscious audiences and leverages advertising revenue, making it increasingly popular in a market noted for its high mobile and digital penetration.
South Korea's robust internet infrastructure and high smartphone usage bolster the success of these models, as consumers demand high-quality, accessible content. Furthermore, evolving consumer habits, particularly among younger demographics, reflect a shift towards flexible viewing options, prompting service providers to adapt their offerings. The interplay between these revenue models presents unique opportunities and challenges, contributing to the overall growth of the South Korea Video on Demand Market and providing a comprehensive framework for understanding consumer behavior in the digital age.Through examining these segments, stakeholders can glean insights that inform strategies for navigating market trends and enhancing viewer engagement in a competitive environment.
Video on Demand Market Content Type Insights
The Content Type segment of the South Korea Video on Demand Market has seen considerable diversification, reflecting the changing media consumption patterns of viewers. Sports content continues to be highly sought after, drawing in large audiences due to the popularity of local and international events, which has led to significant investment from platforms aiming to capture passionate fans.Â
Music content also holds a prominent place in the market, especially with the rise of K-Pop and local indie music, enticing younger audiences and promoting a unique cultural identity.TV entertainment, including drama series and reality shows, remains a staple among viewers, driving engagement and subscriptions for platforms providing unique and localized content.Â
The Kids segment has seen increased demand as parents look for wholesome and educational programming for their children, making it a crucial area for VOD platforms catering to family-oriented audiences. Additionally, movies, both local and international, continue to attract significant viewership, reinforcing the trend of binge-watching and affecting release strategies in the industry.Other niche genres are also emerging, catering to diverse interests, and these trends indicate a robust growth trajectory for the South Korea Video on Demand Market statistics, underlining the vital role of content type in shaping consumer preferences and industry dynamics.
South Korea Video on Demand Market Key Players and Competitive Insights
The South Korea Video on Demand Market is characterized by rapid development and intense competition among various players in the digital content space. Digital streaming services have gained significant traction in recent years, driven by changing consumer preferences and technological advancements. With a blend of local and international providers vying for market share, competition is key to delivering tailored experiences, diverse content offerings, and innovative features. In addition to established price strategies and promotional tactics, companies are investing in exclusive content and original productions to capture the attention of a discerning audience.Â
Understanding the competitive landscape is essential for players seeking to improve their foothold and ultimately enhance their service delivery within the region.Naver has established a commanding presence within the South Korean Video on Demand Market, leveraging its robust technological capabilities and a deep understanding of local consumer needs. As a homegrown platform, Naver capitalizes on its extensive ecosystem, integrating video streaming with its popular search engine and various social features, which elevates user engagement. The company's strengths lie in its user-friendly interface and seamless integration with its other services, promoting a comprehensive digital experience.Â
Naver has successfully invested in local content, highlighting Korean dramas, movies, and variety shows that resonate with domestic audiences, further solidifying its position as a top choice for streaming in South Korea. Its strong focus on partnerships with filmmakers and content creators ensures a steady stream of compelling original programming, allowing Naver to stay relevant in an ever-evolving landscape.Apple TV+ has carved out its niche in the South Korean Video on Demand Market, capitalizing on its global brand equity and a commitment to producing high-quality content. The platform emphasizes original programming, with a growing library of exclusives ranging from critically acclaimed series to documentaries, which allows it to appeal to diverse viewer preferences.Â
Apple TV+'s presence in South Korea is further enhanced by its integration with Apple's ecosystem, allowing for seamless access across multiple devices, and its focus on high production values boosts its appeal. Strengths such as its global reach and strategic investments in talent fortify its position, despite the competitive landscape. Recent mergers and acquisitions in the content production space not only enhance the platform’s catalog but also demonstrate its commitment to diversifying its offerings. As Apple continues to strengthen its foothold through collaborations with local talent and regional production houses, it aims to become a significant player within South Korea's ever-growing video on demand market.
Key Companies in the South Korea Video on Demand Market Include:
South Korea Video on Demand Market Industry Developments
The South Korea Video on Demand Market has seen significant activity recently, with various companies expanding their footprints. In September 2023, Apple TV+ announced its plans to increase content investment in the region, reflecting the growing competition among platforms like Netflix and Disney+. Meanwhile, Kakao and Watcha have been exploring partnerships to leverage their combined user bases and content libraries.Â
A noteworthy development occurred in July 2023 when Tving, a popular streaming service, announced a collaboration with CJ ENM to co-produce original series, enhancing its content offering. Additionally, in October 2023, SBS introduced a new platform aimed at streaming exclusive dramas, aiming to capture a wider audience. The market valuation for major players is trending upward, with Netflix reporting a surge in subscribers in South Korea due to its focus on local content.Â
Furthermore, the South Korean government has been actively promoting its creative industries, fostering an environment conducive to growth in the Video on Demand sector, which has seen robust audience engagement over the last few years, illustrating the region's evolving digital landscape.
South Korea Video on Demand Market Segmentation Insights
Video on Demand Market Revenue Model Outlook
Video on Demand Market Content Type Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 2.14(USD Billion) |
| MARKET SIZE 2024 | 2.53(USD Billion) |
| MARKET SIZE 2035 | 15.81(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 18.126% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Naver, Apple TV+, SBS, Amazon Prime Video, Disney+, MBC, Watcha, CJ ENM, Daum, Wavve, Tving, Netflix, Kakao |
| SEGMENTS COVERED | Revenue Model, Content Type |
| KEY MARKET OPPORTUNITIES | Mobile streaming growth, Original content demand, Expansion of subscription models, Integration with social media, Localization of global content |
| KEY MARKET DYNAMICS | increased smartphone penetration, rising subscription-based models, diverse content offerings, competitive pricing strategies, regional content regulations |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ):
In 2024, the South Korea Video on Demand Market is expected to be valued at 2.53 billion USD.
By 2035, the South Korea Video on Demand Market is projected to reach a valuation of 15.81 billion USD.
The market is anticipated to grow at a CAGR of 18.126% between 2025 and 2035.
Major players include Naver, Apple TV+, SBS, Amazon Prime Video, Disney+, MBC, Watcha, CJ ENM, Daum, Wavve, Tving, Netflix, and Kakao.
The revenue model is divided into Subscription Video on Demand (SVoD), Transactional Video On Demand (TVoD), and Advertisement Based Video On Demand (AVoD).
In 2024, the Subscription Video on Demand (SVoD) segment is valued at 1.15 billion USD.
The Transactional Video On Demand (TVoD) segment is projected to reach 3.75 billion USD by 2035.
The AVoD segment is expected to be valued at 3.52 billion USD by 2035.
Growth drivers include increased internet penetration, rising smartphone usage, and a shift in consumer preferences towards streaming services.
Challenges include intense competition among providers and potential regulatory changes impacting content distribution.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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