Domestic Netflix Usage Rate Rises 5%p Year-on-Year... Paid OTT Services Show Strength
Consumer Insight, a Mobile Communication Research Institute
Analysis of User Behavior in Video and Music Services via Smartphones
Paid OTT Usage Rate Increases by 10%p in Two Years
Domestic Providers Struggle Amid Global OTT Dominance
[Asia Economy Reporter Kim Heung-soon] The proportion of users accessing global paid online video services (OTT) such as Netflix and YouTube Premium on smartphones in South Korea has steadily grown.
According to the '30th Mobile Communication Survey (Second half of 2019, 33,295 respondents)' released on the 24th by the mobile communication research firm Consumer Insight, the usage rate of paid OTT services via smartphones increased from 24% in the second half of 2017 to 34% in the same period last year, a 10%p rise over two years. Among paid OTTs, Netflix's usage rate rose by 5%p compared to the previous year, while YouTube Premium increased by 3%p.
Additionally, a survey on paid service usage and satisfaction conducted last year in the second half among 2,972 smartphone video users showed that YouTube Premium had the highest usage rate at 11%, followed by Netflix at 10%. In terms of satisfaction, Netflix ranked first with 76%, and YouTube Premium was second with 65%.
Among domestic OTTs, Wavve recorded a usage rate of 6%, while Tving and KT Olleh TV Mobile (now 'Season') each had 3%. Satisfaction rates were 58% for Tving, 51% for Wavve, and 45% for Season, lagging behind overseas OTTs. Consumer Insight noted, "Domestic OTTs are responding to the growth of global OTTs through alliances, but it still seems insufficient."
Paid Music Service Usage Rate Rises by 6%p in Two Years
Music Leader 'Melon' Stalls, 'FLO' Strikes Back
The usage rate of paid music services increased from 41% in the second half of 2017 to 47% in the second half of last year, a 6%p rise over two years. However, 'Melon,' which had long dominated the domestic paid music market, showed a somewhat stalled growth. Melon's paid usage rate dropped by 8%p from 25% in the same period last year to 17% in the second half of 2019.
FLO, a music platform launched by SK Telecom, jumped to 4th place with a 6% usage rate in the second half of 2019. Launched at the end of 2018, FLO has been increasing its market share by offering discounts and promotions based on SK Telecom's mobile subscribers. In the satisfaction survey, FLO scored the highest at 64%, followed by Naver Music (63%), Genie (59%), YouTube Premium (55%), and Melon (54%).
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With social distancing measures implemented to curb the spread of the novel coronavirus (COVID-19), interest in OTT services that can be enjoyed at home has increased. Furthermore, global OTTs and music platforms with strong content competitiveness are attempting to enter the domestic market, intensifying competition. In the OTT market, 'Disney Plus' and 'Apple TV Plus,' and in the music market, 'Spotify,' known as the world's largest music platform, are coordinating their entry timing.
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