In a rapidly evolving landscape, Netflix is solidifying its dominance in South Korea's online video service (OTT) market, leveraging strategic content acquisition, partnerships, and technological advancements. As of May 6, 2025, the streaming giant's market position has become increasingly formidable, leaving local competitors like TVING and Wavve struggling to keep pace.
According to Netflix Service Korea's 2024 audit report, the company generated a staggering 899.7 billion won ($756 million) in domestic sales—an impressive 9.3% increase from the previous year. This surge in revenue was complemented by a 44.2% rise in operating profit, reaching 17.4 billion won ($15 million). In stark contrast, local OTT platforms are grappling with significant financial losses, with TVING reporting an operating loss of 710 billion won ($613 million) and Wavve suffering a loss of 277 billion won ($239 million).
The gap in market share is also striking. A recent survey by Consumer Insight revealed that Netflix commands a 45% subscription rate among OTT services in the second half of 2024, while TVING and Wavve lag far behind at 27% and 11%, respectively. This disparity is largely attributed to Netflix's superior content offerings, including blockbuster hits like "Squid Game Season 2" and "The Chef of Black and White," which have helped secure viewer loyalty.
Industry experts suggest that Netflix's success stems from its robust content strategy and partnerships. The company has been actively acquiring rights to popular intellectual properties (IPs) from other platforms. A notable example is "Weak Hero Class 2," which Netflix secured after Wavve decided to abandon the project due to financial constraints. Since its release on April 25, 2025, the series quickly rose to the top of the global non-English TV show category within just three days.
Netflix is also set to release the drama "The Taste of Dignity" simultaneously on Genie TV and Netflix on May 12, 2025, marking a significant collaboration with KT. This move is seen as a pivotal moment for expanding content offerings and enhancing profitability.
Moreover, Netflix is enhancing its advertising-supported standard plan, aiming to attract a diverse user base. Following the introduction of a subscription plan linked with Naver Plus Membership, the platform has seen an increase in male subscribers aged 35-49 and users from regions outside of the capital area, indicating a more balanced demographic distribution.
In addition to expanding its content library, Netflix is strengthening collaborations with local broadcasters. The company entered into a content supply agreement with SBS last year, allowing classic dramas like "Yain Shidae" and "Yeoin Cheonha" as well as the current affairs program "That's What I Want to Know" to be available on its platform. Netflix's VP of Korean content, Kang Dong-han, emphasized the company's commitment to forging closer partnerships with various broadcasters to enhance its content offerings.
Technological innovation is also a key focus for Netflix. The platform is currently developing an AI-based personalized content search feature that allows users to input emotional or situational keywords to receive tailored recommendations. This sophisticated approach aims to enhance user engagement and reduce churn rates, ultimately fostering long-term loyalty to the platform.
As Netflix continues its aggressive expansion strategy, local OTT platforms are feeling the pressure. In March 2025, CJ ENM (which operates TVING) and SK Square (which operates Wavve) announced a joint investment of 250 billion won ($213 million) to pursue a merger. However, discussions have stalled due to KT Studio Genie, which holds a 13% stake in TVING, adopting a passive stance towards the merger.
Despite the challenges, experts argue that the merger of TVING and Wavve is essential for the survival of local OTT platforms. Digital Industry Policy Research Institute head Noh Chang-hee highlighted the urgency of creating a unified K-OTT platform to compete effectively against global giants like Netflix. He noted that the current distribution and revenue structures favor global platforms, causing domestic production companies to lose control and reinvestment capabilities.
Recent data from Mobile Index revealed that Netflix's monthly active users (MAU) in South Korea reached 14,061,673 in April 2025, marking a 24.5% increase from the previous year. In contrast, TVING's MAU dropped by 7.9% to 6,500,929, while Wavve's MAU decreased by 1.3% to 4,033,413. The combined MAU of TVING and Wavve fell from 11,150,209 to 10,534,342, further widening the gap between Netflix and its competitors.
Industry insiders are urging that the integration of TVING and Wavve must be expedited to establish a robust local OTT platform capable of competing on a global scale. Broadcasting professor Cho Young-shin emphasized that building a strong local OTT is an urgent priority for the sustainability of the Korean content ecosystem. He stated, "Securing a minimum level of demand from Netflix's dominance should start with building a strong local OTT."
As Netflix's robust growth trajectory continues, local OTT platforms must act swiftly to adapt to the changing landscape or risk being left behind in the streaming wars.
