Netflix keen on Korean dramas and movies
By Lee Min-hung, Kim Yoo-chul
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Netflix chief streaming and partnerships officer Greg Peters gives a press briefing at the Venetian Hotel on the first day of the Consumer Electronics Show (CES) in Las Vegas. / Courtesy of Netflix
LAS VEGAS/SEOUL ― A senior executive at Netflix, the world’s leading Internet network service company, says the company is interested in boosting its hallyu content, from dramas to movies, to capitalize on Asian countries where demand for Korean culture and K-pop remains solid.
“Netflix likes to work with Korean television broadcasters, or other market players to produce Korean content,” Greg Peters, chief streaming and partnerships officer at Netflix, told Korean journalists at this year’s Consumer Electronics Show (CES) in Las Vegas.
Peters stressed that lots of Korean stories had not been told in a “big way,” implying that the U.S. content distributor might approach Korea’s culture ministry for an alliance in cultural content, which would be mutually beneficial.
“Therefore, the chance of seeing a Korean-specific genre travelling outside the country is realistic,” the executive said, pointing out Netflix’s earlier decision to invest $50 million in a Korean movie called as “Okja” being directed by Bong Joon-ho.
Such remarks come a few days after Netflix began selling its content in Korea. Netflix lists Korean as one of its official languages.
The executive also hopes the Netflix advance into Korea will bring more collaboration with leading technology companies such as Samsung Electronics and LG Electronics because Netflix intends to improve its streaming service.
“Working with consumer electronics devices manufacturers, such as Samsung, LG or Sony for a decade, the coordination that we have been able to develop with them is that we deliver more value for their products by connecting content with experience enabled by our technology investment,” Peters told The Korea Times. “When television manufacturers produce the best 4K panels, we can deliver amazing 4K content.”
It seems obvious that the Korean situation suits Netflix, given the country's strong network infrastructure, with most homes having access to broadband Internet and mobile devices.
If Netflix could partner carriers, then it would allow cheaper and easier content delivery.
Korean users could view Netflix content via tablets, smartphones, game consoles and smart TVs. Basic service fees will start at about 9,000 won monthly, after a one-month free trial.
Licensing talks
While attention has been shifted to finding out which company will become an exclusive business partner for Netflix, the U.S. content provider has been talking with KT, LG Uplus and SK Telecom’s broadband affiliate.
“Discussions (over an agreement to license content with Korean partners) are still under way. I hope good news will be announced soon,” Peters said, adding that Netflix views each market as having a different starting point.
Peters praised Korea’s strong and solid infrastructure for mobile viewing. However, Netflix’s services are being offered without help from local carriers.
“Our goal is basically to provide great experiences on both platforms including television and mobile devices,” Peters said.
According to officials at KT and LG Uplus, the two domestic telecoms are eager to have a strategic partnership with the content provider. Netflix has asked them to sign a 90:10 profit-sharing contract and for free use of Internet Data Centers (IDCs).
Internet TV service companies contracts with local content providers offer a 35:65 portion of profit sharing, with additional payments for using IDCs.
Additionally, the chief of Netflix’s global marketing also expressed confidence in its subscription motto.
“England, Germany and Japan have amazing free-to-air television markets,” he said. “Expectations are that they are not paying for content at all, but we have to educate consumers on the value of this new motto. This connects them to new experiences.”
Critics have doubts about the competitiveness of Netflix-produced content in Korea, citing the limited popularity of Netflix content compared to shows offered by Korea’s major terrestrial broadcasters.
Given the widespread availability of media content on the local black markets, Netflix may be troubled with copyright issues.
However, experts say Netflix could be a good tool to encourage hallyu content as it has been doing a good job of selling customized content on consumer request.
Netflix has more than 70 million subscribers in more than 190 countries. These subscribers have access to more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films.