K-Content Commissions Shrink Despite Surging Demand

While demand for Korean content is increasing globally, rising production costs domestically and strategic shifts at global SVODs have resulted in a decline in commissions, according to Ampere Analysis.

Global streamers cut Korean TV commissions by 43 percent between the first half of 2023 and the first half of this year, Ampere indicates, while local productions fall by 20 percent. The fall in commissions comes as Korean content companies contend with rising production costs, while international platforms are shifting towards acquisitions and local unscripted titles, resulting in a significant impact on the scripted space, with commissions down 39 percent. Only Netflix has maintained its commissioning volume locally, accounting for 88 percent of global SVOD announcements in the first half, but has shifted its spending from scripted to non-scripted content.

Meanwhile, demand remains high, with the share of viewers outside of Korea watching Korean series and films “sometimes” or “very often” rising from 22 percent in Q1 2020 to 35 percent in the same period this year. The slate of K-content accessible on international platforms increased by 55 percent between 2021 and 2024.

Mariana Enriquez Denton Bustinza, analyst at Ampere Analysis, said: “Korean content has leapt onto the international stage, reaching worldwide success with both global SVOD originals and local titles. However, despite continued demand for K-content, TV show commissions from local and global players have declined, with global SVODs changing content strategies from scripted originals to focus on acquisitions, and in Netflix’s case, producing a higher proportion of unscripted titles. Despite struggling with inflated costs, this leaves the export market open for South Korean commissioners, especially now that Netflix is reportedly considering the introduction of caps on actors’ fees, which may lead to a more accessible and reinvigorated local production landscape.”