Domestic OTT Market Size Expected to Reach 3.3 Trillion Won This Year... "Subscription Model to Grow Rapidly"

[Asia Economy Reporter Eunmo Koo] This year, the domestic online video service (OTT) market size in South Korea is expected to exceed 3 trillion won as subscription-based services rapidly grow due to the impact of COVID-19.

According to a recent OTT market report published by global market research firm Statista on the 25th, the domestic online video market size this year is estimated at $2.9577 billion (3.3 trillion won). This represents about a 15% growth compared to last year's $2.5652 billion (2.8671 trillion won). It is analyzed that the domestic online video market has shown growth exceeding initial expectations recently due to COVID-19.

Globally, markets larger than Korea’s include the United States ($60.734 billion / 67.8702 trillion won), China ($43.179 billion / 48.2525 trillion won), Japan ($8.809 billion / 9.844 trillion won), Germany ($5.041 billion / 5.6333 trillion won), and India ($3.825 billion / 4.2746 trillion won).

By type of domestic online video service, the AVOD market, which is free but requires watching ads like YouTube, accounted for more than two-thirds of the total at $203.4 million (2.235 trillion won). Following that, SVOD, referring to subscription-based services such as Netflix, was $635.5 million (708.9 billion won), and TVOD, which charges per content, was $274.8 million (307 billion won).

In terms of growth rate, the SVOD market size increased by 17% compared to last year (606.5 billion won), surpassing AVOD. Based on 2017 data, the domestic SVOD market’s compound annual growth rate (CAGR) is projected at 15.7% through 2025, faster than AVOD’s 13.5%. In fact, Netflix, a representative subscription service, recorded domestic streaming revenue (subscription fees) of 398.8 billion won last year, more than doubling from 175.6 billion won in 2019.

As of this year, AVOD currently has the largest user base at 25.1 million, but its future growth rate is expected to be low. However, SVOD, with 8.56 million users, is projected to increase its users by 4.8% annually, indicating a larger growth trajectory.

This content was produced with the assistance of AI translation services.