Netflix Leads $1.1 Billion Korean VOD Market Amid Intense Competition
The premium video-on-demand (VOD) market in South Korea has reached a significant milestone, generating $1.1 billion in revenue during the first half of 2025. According to a report by research firm ampd, owned by Media Partners Asia, the number of paid subscribers surged to 24.5 million, marking an increase of 1.5 million in just six months. This growth comes as the competition among streaming platforms intensifies.
A notable development in this landscape is the introduction of connected TV tracking in the second quarter of 2025. This new measurement methodology has revealed that viewing habits were significantly underestimated. As a result, reported monthly active users increased by approximately 35% per platform, pushing total viewing hours to an impressive 1.2 billion in Q2 alone.
Netflix’s Dominance and Content Strategy
Netflix maintains its leading position in the Korean market, boasting 8.2 million subscribers and capturing nearly half of all premium streaming viewership. The platform’s success can be attributed to a strategic mix of local blockbusters, including the highly anticipated Squid Game Season 3, recent theatrical releases, and a partnership with Naver Plus, which offers free access to Netflix’s ad-supported tier.
As Netflix thrives, competition is heating up. TVING has made significant strides by introducing budget-friendly ad-supported options alongside a robust lineup of variety shows, Korean dramas, and live sports coverage. In parallel, Coupang Play has launched its own free advertising tier and a new Sports Pass offering, further diversifying its content.
Perhaps the most impactful development in the industry is the approval of the TVING-Wavve merger in June 2025. This combination is set to create a formidable entity with 9.2 million subscribers by year-end, positioning it as a serious contender against Netflix’s international dominance.
Vivek Couto, executive director of Media Partners Asia, noted, “Korea’s premium VOD sector is consolidating around a handful of scaled leaders. Local storytelling remains the foundation of engagement and monetization, while CTV is unlocking new audiences and advertising opportunities. The TVING-Wavve merger will reshape competition, providing a stronger domestic counterweight to Netflix’s scale.”
Viewing Trends and Local Content Consumption
The data further highlights the strong preference among Korean viewers for homegrown entertainment. In the second quarter of 2025, local content accounted for an astounding 86% of all streaming hours. Korean dramas alone captured 48% of total viewership, while variety and reality shows made up an additional 27%. Korean films contributed 10% to the viewing hours, while international content struggled to gain traction, with American films representing only 6% of the total viewing time as the largest foreign category.
Netflix excels in drama consumption, whereas TVING and Wavve dominate variety programming. Dhivya T, lead analyst at MPA and ampd, emphasized the pervasive influence of Korean content, stating, “Korean content’s dominance is near-universal, reaching 88% of all premium VOD users. K-dramas, comedy, and variety shows drive cross-platform reach, while high-profile exclusives on Netflix, TVING, Coupang Play, and Disney+ add competitive edge. Advertising tiers are now central to subscriber acquisition, especially in urban and price-sensitive segments.”
As the Korean streaming landscape continues to evolve, the competition among platforms is expected to intensify. With established players and new entrants vying for viewer attention, the future of the premium VOD market in South Korea looks dynamic and promising.
