Netflix to invest $2.5 billion in South Korean content over the next four years
Netflix said on Tuesday it plans to invest $2.5 billion (approximately Rs. 20,475 crore) in South Korea over the next four years to produce Korean TV dramas, movies and unscripted shows, doubling the amount the company has invested in the market since 2016.
The American streaming service made the announcement after a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos. Yoon arrived in Washington on Monday for a six-day state visit.
President Yoon hailed the investment as a “major opportunity” for South Korea’s content industry and Netflix as the country seeks to increase cultural exports and soft power.
Shares of South Korean production and entertainment companies rallied on Tuesday with Showbox and Studio Dragon up 8.75% and 2.26%, respectively, compared to the smaller index’s 2.21% decline. Country Kosdaq.
Known as the “Korean wave” or Hallyu, the South Korean entertainment industry has seen a global boom in recent years. Its music market, led by K-pop groups such as BTS and Blackpink, is leading the charge.
In 2021, content exports including music, video games and movies reached an all-time high of $12.4 billion (about Rs 1,01,556 crore), according to the latest government data, leaving behind them home appliances and rechargeable batteries in export volume.
“We were able to make this decision because we are confident that the Korean creative industry will continue to tell great stories,” Sarandos said in a statement, citing the streaming platform’s global hits produced by South Korean creators such as than Squid Game, The Glory. , and Physics: 100.
Squid Game, a 2021 release, remains Netflix’s most-watched series of all time, racking up 1.65 billion streaming hours in the first 28 days.
Netflix offered a lighter-than-expected guidance last week as it seeks to crack down on unauthorized password sharing in the second quarter to make improvements, delaying some financial benefits.
© Thomson Reuters 2023
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