Interest in OTT services surges as pandemic forces people to stay home
A Netflix logo is seen in this photo. / Reuters-Yonhap
By Kwak Yeon-soo
With strict social distancing measures issued by the government to curb the spread of COVID-19, over-the-top (OTT) video streaming services have seen higher viewing and increased subscriber growth over the last few months.
According to media and consumer research by Korea Broadcast Advertising Corp., 75 percent of 1,000 survey respondents reported they refrained from outdoor activities in March due to COVID-19 concerns. Around 80 percent of them responded that they watched video content through TV and other digital devices at home.
A Netflix Korea official declined to disclose the number of subscriptions in Korea, but said “the company has seen a temporary surge in streams, but expects viewing and growth to decelerate as lockdown eases.”
Third-party research firm WiseApp has reported seeing massive increases in usage and subscription signups for the service in March. It is estimated that Netflix's subscriber base in Korea grew from around 2 million in December 2019 to approximately 2.72 million in March 2020.
The time Koreans spent watching Netflix on Android smartphones was 8.17 million minutes in the fourth week of February, compared to 6.72 million minutes in the first week of January, according to a report by big data firm Mobile Index.
The recent performance of OTT services stands in contrast to local movie theaters' bleak monthly admissions figures. According to the Korean Film Council, a total of 1.83 million people went to cinemas last month, plunging 87.5 percent from 14.7 million a year earlier. This happened as people avoided going to theaters due to concerns about contagion.
“As people are practicing social distancing and staying home amid the COVID-19 outbreak, they watch a lot of content on OTT platforms,” culture critic Jung Duk-hyun said.
A scene from popular Korean webtoon “Now at Our School,” which will be adapted into the film “All of Us Are Dead” / Courtesy of Netflix
New normal
Netflix entered the Korean market in January 2016, airing both foreign and homegrown content. It also invested in producing original series by joining hands with local producers, filmmakers and actors.
The first original production was adventure film “Okja,” followed by historical zombie thriller “Kingdom” and ensemble piece “Persona.”
“One notable thing about OTT services is that 'Made in Korea' content can be watched by the world,” a Netflix official said. “It can also satisfy content-hungry viewers who look for diverse genres of high-quality content. Moreover, Korean dramas and films are highly popular across the world beyond Asia.”
To broaden its offerings, the U.S. streaming giant struck a deal with some of the major players in Korea's entertainment industry.
CJ ENM and its subsidiary Studio Dragon signed a three-year content production and distribution agreement with Netflix last November. That same month, JTBC Content Hub, home to drama series including “Sky Castle” and “Itaewon Class,” also signed a three-year licensing deal.
In April, crime thriller “Time to Hunt” became the first Korean film to premiere on an OTT platform after skipping theatrical release.
“It's exciting that the film was released in 190 countries through Netflix,” director Yoon Sung-hyun said. “I'm open to new opportunities directing Netflix original series ― films, drama series or whatever. I don't have a fixed idea or opinion on what kind of film it should be.”
Following the OTT trend, well-known filmmakers and stars are rushing to Netflix. Many find the platform attractive because the streamer is known to guarantee creative freedom so that they can unfold all kinds of stories.
Director Kim Jin-min of Netflix original series “Extracurricular,” which premiered on Tuesday, said the latest project deviates from conventional Korean dramas as it is about teenagers exploring the dark side of youth.
“Such a crime drama with a streak of intense suspense couldn't have been aired by Korean broadcasters,” he said.
Director Lee Jae-kyoo will return with the Netflix original “All of Us Are Dead,” which is about high school students trapped in their school during a zombie apocalypse. An adaptation of a popular Korean webtoon titled “Now at Our School,” it will be the second Korean zombie series ordered by Netflix following “Kingdom.”
Lee is a well-known Korean directors both on the big and small screens, having produced hit TV series like “Beethoven Virus” and “The King 2 Hearts” as well as movies like “The Fatal Encounter” and “Intimate Stranger.”
A scene from Korea's popular webtoon “Hell,” which will be adapted into the film “Hellbound” / Courtesy of Netflix
Director Yeon Sang-ho, well-known for his work “Train to Busan,” is set to direct new Netflix series “Hellbound.” A thriller series based on the Korean webtoon “Hell,” the story will be about a group of people who encounter supernatural creatures from Hell.
Netflix is also set to release the fantasy series “The School Nurse Files” in the first half of 2020, starring actors Jung Yu-mi and Nam Joo-hyuk. Directed by Lee Kyoung-mi, it is based on a novel about a high school nurse with supernatural abilities who faces mysterious incidents at her new school.
In addition, star actor Jung Woo-sung will participate in the Netflix original series “Silent Sea” as an executive producer. Based on a short film with the same title, “Silent Sea” is a mystery sci-fi thriller about people confronting water shortage in the future.
Post-corona
Although OTT platforms are expanding their reach to mass audiences, many industry officials predict the unexpected boost from the COVID-19 outbreak will be short-lived. Some cast doubt on OTT services replacing movie theaters, at least in the near future.
“The function of movie theaters is different from OTT platforms. Cinemas are great for watching blockbusters, where you can enjoy them through a large screen and advanced sound system. On the other hand, OTT platforms are best suited for watching films with long runtimes,” culture critic Jung said. “It is possible that, in the future, filmmakers and producers will make films specifically targeted to OTT platforms.”
An official of Korea's largest multiplex cinema franchise CGV official said, “Of course, watching a film on your phone, tablet, laptop or TV can be comfortable. However, movie theaters offer a communal experience coupled with the fact that you're watching it on the widescreen with great sound quality. Society wants things to be normalized, and we're pretty sure many wouldn't want cinemas to be lost.”