Smartphone drives South Korean online video growth

June 01, 2017  | Subscribers Only

Jun Wen Woo Jun Wen Woo Senior Research Analyst – Online Video, IHS Markit
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South Korean broadband household penetration reached 83% in 2011 and continues to rise, increasing to 85% by the end of 2016. Pay TV homes increased from 15 million in 2011 to almost 18 million over the same period as the market matured.The annual revenue per user (ARPU) of a pay TV service in South Korea was USD 215 in 2016, more than two times bigger than the ARPU for online video subscription, which was USD 97. Meanwhile, the legal physical video market in South Korea is decreasing. According to IHS Markit, DVD and Blu-ray Disc (BD) consumer revenue declined from KRW 85 billion (USD 73 million) in 2011 to KRW 53 billion (USD 46 million) in 2016. The market is very different from neighbouring Japan, where physical online video is still very big, with consumer revenue at almost USD 3 billion in 2016 despite decreasing revenue.

Highlights:

  • South Korean paid-for online video market is driven by high smartphone adoption
  • POOQ and TVing are the top services in terms of subscribers
  • New services will intensify competition in the market 

In this report:

  • South Korea broadband household penetration
  • Macroeconomic trends in South Korea
  • Paid-for online video trends
  • Company profiles

List of tables and charts:

  • South Korea: smartphones and mobile subscriptions per 100 population
  • South Korea: broadband households vs broadband penetration
  • South Korea: real GDP and consumer spending trends
  • Unemployment rate trends (%)
  • South Korea: total revenue of subscription and transactional services (KRWbn)
  • South Korea: total revenue of paid-for online video market (KRWbn)

Number of pages: 8

Number of tables and charts: 6

 

Jun Wen Woo

Senior Research Analyst – Online Video, IHS Markit

Ms. Jun Wen Woo is a senior research analyst for Online Video at IHS Markit.

Geography
South Korea
Organization
CJ E&M
Research by Market
Media & Advertising
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