Netflix, a provider of on-demand Internet streaming media and simultaneously dubbed “IKEA in the media industry”, is reportedly set to jump into South Korea next year, according to market watchers.
Local media industry is keeping a keen eye on America’s new media tycoon’s possible inroad into the nation.
Netflix is a newly emerging media giant whose market value recently outpaced America’s top three broadcast television network CBS, and has also led “Code Cutting” in the U.S. market. “Code Cutting” refers to users’ canceling subscription of conventional cable televisions to turn to new types of content services such as video streamlining.
The Internet streaming media, which has already made inroads into 50 countries, said it aims to provide its services in 200 nations within two years. As part of its efforts to launch its service globally, Netflix is speeding up in expanding its business into Asian region recently.
In February, an American cable television CNBC reported that Netflix would make forays into Japan this fall. Also, this week, Bloomberg reported that the American firm is in discussion with Chinese companies including Alibaba Group chairman Jack Ma-backed Wasu Media holding. It is reportedly seeking partners which have content license for all devices including smartphones, personal computers and set-top box.
Netflix is said to advance into South Korea next year, according to market watchers. Last year, it posted a job opening to hire employees in charge of Korea’s market. According to local media outlets recently, officials from Netflix met with Korean cable companies this year to discuss possible partnerships with them.
The local media industry is taking note of Netflix’s inroad into South Korea. Analysts say Netflix is expected to lead the dramatic shift here. Korea’s media infrastructure is best suitable for Netflix’s service with the world’s best communications network and the highest penetration rate of smartphones and tablets. Koreans also tend to fast adapt to new technologies and services.
“The firm’s employees in charge of content distribution and technology met with Netflix recently. We had a short conversation about the possible adoption of Netflix’s service,” an official from local IPTV said.
Meanwhile, Reed Hastings, chief of Netflix, drew much attention last month, by predicting the future of television.
“We will come to see that linear TV declines every year for the next 20 years,” he said, speaking at the Re:publica conference in Berlin. He also added that, “Internet TV rises every year for the next 20 years.”
By Chun Go-eun
