{"id":2206689,"date":"2024-10-04T11:55:31","date_gmt":"2024-10-04T02:55:31","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206689"},"modified":"2024-10-07T18:51:28","modified_gmt":"2024-10-07T09:51:28","slug":"south-korean-dramas-face-rising-costs-as-streaming-giants-dominate","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/10\/south-korean-dramas-face-rising-costs-as-streaming-giants-dominate\/","title":{"rendered":"South Korean dramas face rising costs as streaming giants dominate"},"content":{"rendered":"
Even before Netflix\u2019s global hit \u201cSquid Game,\u201d South Korean dramas (K-dramas) had been enhancing the country\u2019s cultural influence internationally. However, despite their rising popularity, the industry has faced a sharp production decline, sparking concerns about its sustainability.<\/span><\/p>\n Media experts warn that the rigidity of drama production and the disruptive influence of over-the-top (OTT) platforms \u2014 media services that deliver content directly over the internet \u2014 could lead to further instability in the industry.<\/span><\/p>\n PRODUCTION DECLINE IN 2023<\/b><\/p>\n In 2023, the K-drama production sector experienced a downturn, reversing years of growth. According to the Korean Drama Production Association, 141 dramas were produced in 2022, but that number <\/span>dropped<\/span><\/a> to 123 in 2023, raising alarms about the industry\u2019s health.<\/span><\/p>\n Yoo Su-jung, a researcher from the KBS Media Research Center, noted that while the media industry has grown compared to a decade ago, many see the drop in production as a crisis. The growing influence of OTT platforms has only added to the challenges faced by traditional broadcasters.<\/span><\/p>\n \u201cBack in the 1990s, there was only terrestrial broadcasting. But then we saw the emergence of cable TV and IPTV, and they\u2019ve all expanded Korea\u2019s broadcasting industry significantly,\u201d Lee Yong-suk, a former producer at broadcaster SBS, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n Lee added that Japan and China initially played a key role in financing Korean dramas, with the latter <\/span>investing<\/span><\/a> to secure <\/span>overseas distribution rights<\/span><\/a> and for product placement advertisements.<\/span><\/p>\n However, Chinese support waned after diplomatic tensions, such as in 2017 when Beijing imposed <\/span>unofficial sanctions<\/span><\/a> on Seoul for agreeing to host U.S. Terminal High Altitude Area Defense anti-missile batteries.<\/span><\/p>\n That was when OTT platforms like Netflix stepped in, offering critical financial support. Lee pointed out that OTT platforms, including Netflix, became significant investors in Korean content as broadcasters struggled with reduced advertising revenue.<\/span><\/p>\n Lee noted that while these partnerships have provided essential funding, they\u2019ve also driven up production costs, which has reduced the number of dramas produced annually and limited job opportunities for industry professionals.<\/span><\/p>\n