UNITED STATES: Netflix Inc. (NFLX.O) announced on Tuesday that it intends to spend $2.5 billion in South Korea over the following four years to produce Korean TV series, films, and unscripted projects, more than doubling the amount the firm has committed in the market since 2016.
The American streaming service announced a meeting between Netflix co-CEO Ted Sarandos and South Korean President Yoon Suk Yeol. Yoon landed in Washington on Monday for his six-day state visit.
President Yoon hailed the investment as a “major opportunity” for South Korea’s Netflix and entertainment businesses as the nation seeks to boost soft power and cultural exports.
On Tuesday, shares of South Korean production and entertainment firms rallied, with Studio Dragon (253455.KQ) and Showbox (086980. KQ) rising 2.26% and 8.75%, respectively, in comparison to the nation’s smaller Kosdaq index’s (.KQ11) 2.21 fall.
In recent years, South Korea’s entertainment sector, also known as Hallyu or the “Korean Wave,” has experienced a tremendous surge on a global scale. The country’s music industry, driven by K-pop groups like lack pink and BTS, has been leading the charge.
In 2021, content exports, which include music, video games, and films, hit a new high of $12.4 billion, as per the most recent government data, surpassing exports of rechargeable batteries and home appliances.
Sarandos stated, “We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories,” citing the streaming service’s international hits created by South Korean creators like “Squid Game,” “Physical:100,” and “The Glory.”
The “Squid Game” series, which was released in 2021, is still Netflix’s most-watched series of all time, garnering 1.65 billion hours of viewing in the first 28 days.
Last week, Netflix provided a less optimistic outlook than anticipated because it plans to crack down on unapproved password sharing in the second quarter to make changes, which will postpone certain financial gains.
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