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South Korea’s OTT Shake-Up: How Domestic Platforms Narrowed Netflix’s Lead in 2024

General Report May 16, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Overview of the Korean OTT Market in 2024
  3. Domestic OTT Growth in H1 2024
  4. Intensified Competition in Q3 2024
  5. Strategies Driving Domestic OTT Surge
  6. Conclusion

1. Summary

  • In the year 2024, South Korea’s OTT (Over-the-Top) market underwent a significant transformation, characterized by a notable reduction in Netflix’s market dominance as domestic platforms such as Tving and Coupang Play gained traction among consumers. Early data from 2024 revealed a downward trend for foreign OTT services, contrasting sharply with the striking growth observed in local offerings. By September 2024, Netflix reported a monthly active user (MAU) count that had dipped to 1.1 million below its previous peak, highlighting the challenges it faced amid rising competition.

  • The growth of domestic OTT services was particularly pronounced in the first half of the year, with Tving achieving a record MAU of 7.56 million in June 2024, thanks to exclusive broadcasting rights for highly sought-after sports events, such as the Korean Professional Baseball League. Concurrently, Coupang Play achieved a significant milestone with an MAU of 6.11 million, benefiting from its strategic focus on sports content, including the Qatar Asian Cup. These advancements underscore the shifting viewer preferences, where localized content and innovative pricing strategies played crucial roles in attracting and retaining audiences.

  • As 2024 unfolded, it became clear that the competitive landscape in the South Korean OTT market was fundamentally changing. By the end of September, Tving's MAU reached 7.83 million, further narrowing the gap with Netflix, which struggled to maintain engagement due to a lack of compelling new content. This transition highlighted a significant paradigm shift where the appeal of domestic platforms could be attributed to their ability to offer unique, innovative content that resonated with local audiences. The IGAWorks Mobile Index substantiated this trend, revealing robust growth for domestic services, while foreign platforms faced user retention challenges as a result of inadequate content offerings.

  • Overall, the developments in 2024 illustrate a clear pivot towards a more competitive arena, wherein South Korea's homegrown OTT platforms not only captured significant market share but also began redefining consumer expectations for content consumption.

2. Overview of the Korean OTT Market in 2024

  • 2-1. Market leadership and historical Netflix dominance

  • In the years leading up to 2024, Netflix maintained a formidable lead in the South Korean OTT (Over-the-Top) market, enjoying significant market share and user engagement. The platform's initial success was largely attributed to its extensive library of both original and licensed content, as well as its pioneering approach to content streaming, which set a high standard for consumer expectations. Nonetheless, as consumer preferences shifted and competition intensified, Netflix's once-unassailable position was increasingly challenged by emerging domestic rivals.

  • 2-2. Emergence of domestic OTT competitors

  • In 2024, notable growth was observed among domestic OTT platforms such as Tving and Coupang Play. These services capitalized on the evolving viewing habits of South Korean audiences, which increasingly favored localized and specialized content. Tving's remarkable climb was underscored by its record MAU of 7.56 million in June 2024, bolstered by exclusive rights to domestic sports events, including baseball, which resonated well with local fans. Concurrently, Coupang Play attracted users with high-profile sports broadcasts, such as the Qatar Asian Cup, demonstrating the effectiveness of niche content strategies that appealed to the core demographics of their respective services.

  • 2-3. Overall MAU trends in 2024

  • The MAU data from early 2024 illustrated a paradigm shift in the competitive landscape of South Korea's OTT market. As of June 2024, while foreign platforms like Netflix and Disney Plus experienced declines in their user base, domestic competitors experienced significant increases. The growth rates for Tving and Coupang Play were particularly pronounced, marking a clear transition wherein traditional user preferences began to favor services that offered distinct, localized content and innovative pricing strategies. The increase in MAUs was representative of a broader trend, signaling a pivotal moment in the OTT sector characterized by intensified competition and evolving viewer expectations.

3. Domestic OTT Growth in H1 2024

  • 3-1. MAU increases for Tving, Coupang Play, Wavve, Watcha

  • In the first half of 2024, South Korea's domestic OTT platforms witnessed considerable growth in their Monthly Active Users (MAU). Tving, for example, achieved a record MAU of 7.56 million in June 2024, marking an increase of approximately 910, 000 users from December 2023. This impressive growth can be attributed to the platform's strategic focus on exclusive content, including the online broadcasting of domestic professional baseball games and the successful launch of an advertisement-supported standard subscription plan, which significantly lowered entry costs for new subscribers. Such initiatives not only attracted a wider audience but also positioned Tving as a formidable challenger to Netflix in the competitive OTT landscape. Coupang Play also experienced a significant upswing, recording an MAU of 6.11 million, which reflects an increase of about 890, 000 users since the end of 2023. The platform's growth has been fueled by its exclusive sports content, including the Qatar Asian Cup and special Major League Baseball events, coupled with the compelling value of its Coupang Wow membership, which remains a major draw despite a subscription price hike.

  • 3-2. Decline in Netflix and Disney Plus user counts

  • Contrasting sharply with the domestic platforms' gains, both Netflix and Disney Plus experienced user count declines during the same period. By mid-2024, Netflix, which had long dominated the South Korean OTT market, began to see a downward trend in its MAU, driven by escalating competition and the inability to maintain its previous growth momentum. Disney Plus was similarly affected, encountering challenges in user retention as domestic offerings became increasingly appealing due to localized content and competitive pricing strategies. By June 2024, Netflix's user base had slipped considerably, prompting industry analysts to evaluate the impact of domestic content strategies in diverting viewers away from foreign platforms. This shift further illustrates a significant transition in user preferences, favoring homegrown content over international franchises.

  • 3-3. Insights from IGAWorks Mobile Index

  • Data from the IGAWorks Mobile Index for the first half of 2024 reveals a pronounced shift in consumer engagement towards domestic OTT services. The comparative analysis between December 2023 and June 2024 highlighted that while foreign services faced declines, platforms like Tving, Coupang Play, Wavve, and Watcha showcased robust user growth. The findings from the index underscore the growing importance of tailored content strategies, including live sports and unique original programming, which have played critical roles in attracting audiences to domestic OTT options. This trend indicates a major paradigm shift in the South Korean OTT market, where local services are not only narrowing the competitive gap but are also beginning to redefine viewer expectations and content consumption patterns amidst an evolving media landscape.

4. Intensified Competition in Q3 2024

  • 4-1. Netflix MAU fall to 11 million in September

  • In September 2024, Netflix's monthly active users (MAU) fell to 11 million, marking a significant decline from its peak MAU of 14 million recorded in January of the same year. This decline can largely be attributed to a shortage of compelling new content following the success of its major drama, 'The Glory.' Despite its dominant position in the streaming market, Netflix struggled to maintain user engagement due to the lack of buzzworthy releases. Additionally, the company's move towards stricter subscription enforcement, including measures against password sharing, likely discouraged some users and contributed to this drop in active subscribers.

  • 4-2. Gap between Netflix and Tving narrows to historic lows

  • By late September 2024, the competitive landscape in South Korea’s OTT market was notably shifting, with the gap in user numbers between Netflix and Tving shrinking to historic lows. Tving managed to capture 7.83 million MAU, marking a notable increase and highlighting the continued rise of domestic competitors. The narrowing of this gap is significant, as it reflects a change in marketer dynamics where homegrown platforms are increasingly encroaching on the territory previously dominated by foreign entities like Netflix. This evolution suggests a vital shift in consumer preferences towards local content and services, propelled by Tving’s strategic focus on differentiated entertainment offerings, particularly in sports programming.

  • 4-3. Monthly MAU comparisons from Mobile Index

  • Analysis by the Mobile Index revealed that Tving not only experienced growth but also outperformed other domestic OTT platforms. In September 2024, Tving's MAU surged by approximately 5.6% from previous months. Meanwhile, Coupang Play recorded a striking growth of 12.1%, reaching 6.85 million MAU during the same timeframe. In contrast, Netflix, despite being the market leader, displayed stagnation or decline in its user base. Disney Plus, on the other hand, saw further declines, consolidating its position at the bottom of the competitive ladder with only 2.85 million active users. These trends underscore the shifting tides in the OTT landscape, where local competitors are effectively capturing audience share, challenging the previous supremacy of global platforms.

5. Strategies Driving Domestic OTT Surge

  • 5-1. Role of live sports and exclusive rights

  • A key strategy bolstering the rise of domestic OTT platforms like Tving and Coupang Play in South Korea has been their aggressive acquisition of live sports broadcasting rights. Tving's pivotal move to secure exclusive rights to the Korean Professional Baseball (KBO) brought a distinct competitive edge, allowing them to attract a dedicated fanbase. This shift toward live sports came at a time when the broader OTT market was experiencing stagnation, positioning Tving to capitalize on the significant demand for real-time sports interactions among viewers.

  • From early May 2024 onward, Tving transitioned to a fully paid model for these broadcasts after an initial free trial period, leading to a notable spike in their monthly active users (MAUs). Reports indicated a gain of approximately 250, 000 subscribers shortly after the transition, demonstrating the direct influence of exclusive sports content on user engagement and loyalty. Meanwhile, Coupang Play also made significant strides by successfully broadcasting high-stakes matches from renowned global clubs, which contributed to their incremental user base growth.

  • 5-2. Investment in original and differentiated content

  • Beyond sports, domestic OTT platforms have increasingly recognized the value of producing original content tailored to local tastes. Tving’s investments in unique drama series such as 'Eyes That Kiss in the Corners' and content-rich variety shows have received favorable acclaim, driving both viewer interest and subscriptions. These productions are often designed to resonate with the cultural and social narratives familiar to Korean audiences, thereby increasing their relatability and engagement.

  • In addition, the successful outcome of Tving's hit shows throughout 2024 demonstrated their commitment to innovate and differentiate from traditional offerings. By focusing on narratives and genres not prominently featured by global competitors, Tving and Coupang Play have leveraged original programming to establish strong brand identities and foster a loyal viewer base. This has been marked by a consistent increase in MAUs across their platforms, reflecting viewer appreciation for more diverse content.

  • 5-3. Market and platform expansion tactics

  • Another contributing factor to the domestic OTT surge has been the comprehensive strategies for market and platform expansion employed by companies like Tving and Coupang Play. Both platforms have adopted aggressive marketing tactics, including promotional pricing, bundling with mobile services, and exclusive viewing experiences to attract new subscribers and retain existing ones. For instance, Tving's strategic pricing adjustments, such as limited-time discounts and partnerships with local telecommunication firms, have significantly lowered barriers for new entrants into their ecosystem.

  • Additionally, as part of their platform expansion tactics, both Tving and Coupang Play have sought to enhance user experience through technological improvements and interface upgrades. This focus not only caters to consumer preferences for seamless streaming but also integrates modern functionalities to enhance the usability of their services. Such efforts facilitate broader audience engagement, directly contributing to their growth in a landscape increasingly characterized by convenience-driven viewing experiences.

Conclusion

  • The transformation of South Korea’s OTT landscape throughout 2024 marks a pivotal moment in the industry, shifting from Netflix’s previously unchallenged supremacy to a dynamic and competitive marketplace. Domestic platforms, most notably Tving and Coupang Play, have effectively utilized strategies centered around sports broadcasting and the production of original content tailored to local tastes, capitalizing on a marked shift in viewer preferences that emphasizes localized offerings and content diversification. As traditional foreign platforms like Netflix and Disney Plus experience stagnation in user engagement, the need for these companies to innovate becomes critical in maintaining their market presence.

  • As of May 16, 2025, the ongoing trends indicate that domestic OTT platforms will need to continue expanding their content strategies by exploring exclusive rights deals and diversifying their original programming to capture and sustain viewer interest. The potential for growth remains promising, especially as consumer behavioral shifts deepen and malleable partnerships evolve in response to audience demand for tailored experiences. Future prospects suggest that innovations in interactive content, co-productions, and strategic collaborations will be vital to enhancing viewer loyalty and positioning domestic platforms favorably in the increasingly crowded market.

  • Looking forward, the competitive environment will likely intensify further. Operators must embrace ongoing consumer engagement initiatives while continuously adapting to changing tastes and preferences. For the next phase of the OTT evolution, the successful navigation of these developments will depend significantly on leveraging data analytics, audience feedback, and technological advancements, which will ultimately shape the future of content consumption in South Korea.

Glossary

  • OTT: Short for Over-the-Top, OTT refers to streaming media services delivered directly to viewers via the internet, bypassing traditional distribution channels like cable or broadcast television. This model has gained significant traction in recent years as consumer preferences shift towards on-demand content availability.
  • MAU: Monthly Active Users (MAU) is a metric used in the digital space to measure the number of unique users who interact with a service within a month. This figure is crucial for assessing user engagement and platform growth, reflecting the overall popularity and competitiveness of streaming services.
  • Tving: Tving is a South Korean OTT platform that emerged as a significant competitor to Netflix in 2024. It gained traction notably due to its exclusive broadcasting rights for live sports events, such as the Korean Professional Baseball League, appealing to local audiences' preferences for real-time content.
  • Coupang Play: Coupang Play is another key player in South Korea's OTT market, recognized for its focus on sports content, including high-profile events like the Qatar Asian Cup. As of 2024, the platform recorded substantial MAU growth through strategic content and membership offerings.
  • Content Differentiation: Content differentiation involves creating distinct and varied programming to attract specific audience segments. In the competitive OTT landscape, platforms like Tving and Coupang Play employed this strategy by focusing on localized content and original productions to attract viewership amidst rising competition.
  • Mobile Index: The Mobile Index, specifically from IGAWorks, is a tool used to track the performance and trends of mobile applications, including OTT platforms. It provides insights into user engagement metrics like MAU, allowing stakeholders to evaluate market shifts and user behavior over time.
  • Market Competition: Market competition refers to the rivalry among companies in the same industry aiming to attract consumers and achieve higher sales. In 2024, the South Korean OTT market saw intensified competition as domestic platforms successfully challenged the previously dominant positions of foreign players like Netflix.
  • Sports Content: Sports content encompasses programming dedicated to sports events, news, and related entertainment. The strategic acquisition of live sports broadcasting rights was instrumental for platforms like Tving and Coupang Play, helping them capture significant audience interest and derive large MAU increases.
  • Disney Plus: Disney Plus is a subscription-based streaming service offering a wide range of content from Disney, Marvel, Star Wars, Pixar, and National Geographic. As of mid-2024, it faced challenges in the South Korean market, struggling with user retention as domestic services gained popularity.
  • Wavve: Wavve is a South Korean OTT service formed through a partnership of major telecom and media companies. It aims to offer a diverse array of streaming content, but as of 2024, it has faced challenges in competing against stronger domestic platforms like Tving and Coupang Play.
  • Watcha: Watcha is a South Korean streaming service recognized for its unique movie and TV show recommendations based on user preferences. The platform competes with established players in the OTT space, focusing on niche content offerings to retain and attract subscribers.

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