Netflix Users Decline for 3 Consecutive Months... Changes in Domestic OTT Market Competition Landscape

[Asia Economy Reporter Kang Nahum] The competitive landscape of domestic online video services (OTT) is changing. While Netflix's number of domestic users is showing a clear decline, native OTTs such as Wavve and TVING are maintaining steady user numbers.

According to market research firm Nielsen Korean Click on the 20th, Netflix's domestic monthly active users (MAU) last month stood at 8,083,501, down 152,787 (1.9%) from 8,236,288 in the previous month. This marks a decline for three consecutive months since peaking at 8,993,785 in January.

Foreign media have analyzed that the special demand Netflix enjoyed during the early spread of COVID-19 last year is coming to an end. As the COVID-19 situation prolonged, users consumed a lot of Netflix content and increasingly turned their attention to other leisure activities.

The aggressive content investment and service enhancement by native OTTs to strengthen competitiveness are also considered contributing factors. Wavve, ranked second, saw a dip to the 3.31 million range in February after 3.71 million in January, but recorded nearly 3.7 million MAU consecutively in March and April.

Third-ranked TVING also experienced a decrease from 3,119,928 in January to the 2.76 million range in February, then recorded 3.27 million in March and 2.93 million in April, fluctuating around the 3 million mark and continuing an upward trend since the second half of last year.

In the second half of the year, the domestic OTT market is expected to see a major variable with the launch of Disney's OTT service, Disney Plus, in Korea. Disney Plus began service in Malaysia and Thailand at the end of June and is preparing to enter the Korean market in the second half of the year.

According to economic media CNBC and others, Disney Plus's global paid subscriber count reached 103.6 million as of the 3rd of last month. Disney aims to secure 230 million to 260 million subscribers by 2024, and it is expected to conduct aggressive marketing in the Korean market, which has great potential.

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