Explainer: Decoding Netflix's billion-dollar obsession with Korean dramas, films, shows
Netflix has strategically reinvented itself as the undisputed go-to streaming hub for K-drama aficionados, and trust us, it's no accident. It's a meticulously executed game plan—highlighted by groundbreaking alliances with Korea's entertainment powerhouses. From Squid Game to the heartwarming Crash Landing on You, Netflix has orchestrated a symphony of K-dramas that's rocking the global stage. Here's how Netflix became the top K-drama streaming service!
Netflix unleashing hyperlocal content for global dominance
Hollywood was recently brought to a standstill by the historic actors and writers' double strike. Despite these tensions, Netflix remained steadfast in its ambition—global dominance in entertainment. Rather than creating universally appealing content for global audiences spanning 190 countries, Netflix has a targeted approach. It aims to expand its footprint in less-explored regions, redirecting much of its $17B annual budget to foreign language programming.
How Netflix managed to curate extensive library of K-dramas
In 2019, Netflix inked a three-year partnership with Korea's entertainment giant, CJ ENM, and its subsidiary, Studio Dragon. As part of this collaboration, Netflix was able to access Studio Dragon's extensive back catalog. Studio Dragon's portfolio included iconic dramas like Crash Landing on You, The King: Eternal Monarch, and Goblin. Their 2022 lineup continued the streak with hits like Business Proposal and Our Blues.
Netflix's game-changing journey to streaming dominance in Korea
In 2018, Netflix announced its first original K-drama, Mr. Sunshine—a 24-episode historical romance drama. It marked a paradigm shift in the Korean entertainment industry. Netflix swiftly emerged as the top online streaming platform in Korea, gaining 4.1M paid subscribers there by 2020. This surge in Korean viewers prompted Netflix to adopt an aggressive strategy, doubling down on the creation of original Korean content.
Investments in K-entertainment paid off with global hits
In 2017, Netflix injected $50M into the production of Oscar-winning director Bong Joon-ho's film Okja. The streaming giant continued its Korean success with a $17M investment in the hit zombie series Kingdom in 2019 and allocated $25M for the apocalyptic series Sweet Home in 2020. All three achieved widespread acclaim, with Kingdom and Sweet Home finding significant success in the United States and Europe.
Netflix's 'golden gate' opened with unprecedented success of 'Squid Game'
Squid Game (2021) is reportedly Netflix's most-watched series, with 95% of its viewership from outside Korea. Other Korean content subsequently gained global attention due to this thriller series. Following this triumph, Hellbound (2021) and All of Us Are Dead (2022) achieved Netflix's top spots. These series acted as a golden gateway for the streaming giant, motivating it to ramp up investments in Korean content.
Quick look at Netflix's K-drama powerhouses so far
Squid Game stands as a colossal phenomenon, amassing over 2.2B watch hours. Following closely is Extraordinary Attorney Woo (2022), earning 662M global watch hours by December 2022, securing a spot in the Netflix Top 10 in more than 50 countries. All of Us Are Dead is next with 659M hours watched, while The Glory, Little Women, and Business Proposal range between 100M-300M watch hours.
Netflix's strategic $2.5B move to elevate its K-drama portfolio
In April, Netflix unveiled plans to invest $2.5B over the next four years in creating Korean series, films, and unscripted shows. Interestingly, with approximately three-fifths of Netflix users having watched Korean content, viewing time for such programs has surged six-fold in four years. Netflix Co-CEO Ted Sarandos highlighted that 90% of the viewers for Korean romance-genre content are international—emphasizing the global appeal of K-dramas.
Meanwhile, Netflix's dominance raised alarms for domestic broadcasters
In Korea, TV production budgets have skyrocketed tenfold per episode in recent years, indicating Netflix's impact. This surge, per Lee Young-lyoul—a professor at the Seoul Institute of the Arts—raises concerns about the waning competitiveness of domestic broadcasters with Netflix. Moreover, a 2023 academic paper published in The International Journal of Communication also implied a concerning cycle of dependency between Netflix, production companies, and talent.
