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Closing the Gap: How Tving and Coupang Play Challenge Netflix's Dominance in South Korea

General Report May 20, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Evolution of South Korea’s OTT Landscape
  3. Tving’s Surge in User Engagement
  4. Coupang Play and Other Domestic OTT Growth
  5. Netflix’s Slowing Momentum
  6. Market Competition and Future Outlook
  7. Conclusion

1. Summary

  • As of May 2025, the South Korean Over-the-Top (OTT) media landscape has undergone a significant transformation, characterized by the rise of domestic platforms Tving and Coupang Play in their challenge to the historical dominance of Netflix. This shift was notably illustrated by late 2024 data, when Netflix’s monthly active users (MAU) saw a decline to approximately 11.21 million from a previous peak of 14 million in early 2024. In stark contrast, Tving’s MAU surged to 7.83 million, and Coupang Play recorded a notable increase, demonstrating a broader trend of consumer preference shifting towards local content. Key drivers of this change included Tving's strategic acquisition of exclusive sports broadcasting rights, which resonated strongly with viewers, thereby enhancing user engagement and narrowing the competitive gap with Netflix to unprecedented levels.

  • The early months of 2024 highlighted a pivotal moment when domestic OTTs began to harness shifting viewer preferences, with Tving and Coupang Play reporting consistent growth rates of 5.6% and 12.1%, respectively. This growth took place against a backdrop of stagnation for several international platforms, indicating a complex interplay of market forces. The emergence of sports content, particularly KBO League broadcasts, underpinned Tving’s success, attracting viewers eager for live sports as alternatives to Netflix's conventional on-demand programming. Such dynamics exemplify a broader trend where localized and niche content offerings are eclipsing homogenized, globally appealing selections from major players.

  • Furthermore, the effective utilization of mobile data analytics has proven invaluable for domestic platforms, allowing for data-driven decisions that cater to user preferences. The ability to optimize content offerings has empowered Tving and Coupang Play to enhance their viewer engagement strategies significantly. Thus, by early 2025, these platforms have not only revolutionized their content libraries but also solidified their competitive stances, prompting Netflix to reassess its content and pricing strategies in an increasingly crowded marketplace.

2. Evolution of South Korea’s OTT Landscape

  • 2-1. Market leaders through mid-2024

  • By mid-2024, South Korea's Over-the-Top (OTT) media service landscape had witnessed a significant shift away from Netflix's prior dominance, primarily due to the ascendant popularity of domestic platforms like Tving and Coupang Play. As of September 2024, Tving reported monthly active users (MAU) of 7.83 million, capturing a rapidly narrowing gap with Netflix, which dipped to 11.21 million MAU from its previous peak of 14 million. This narrowing gap marked the lowest recorded difference between the two platforms, indicating a significant shift in viewer engagement.

  • In contrast to Tving, the global player Netflix experienced a decline of approximately 180, 000 MAUs over the previous year, signaling cracks in its previously unassailable market position. Factors contributing to this decline included the lack of compelling content releases following the success of 'The Glory' and the onset of new account-sharing policies that resulted in subscription price increases. Conversely, Tving's success was attributed to its diverse content offerings, including exclusive sports broadcasting rights that appealed to a broad audience.

  • 2-2. Early shifts in user trends

  • The early months of 2024 signified a pivotal transformation in user trends as domestic OTTs began to capitalize on shifting viewer preferences. The data indicated consistent growth for Tving and Coupang Play, registering MAU increases of 5.6% and 12.1%, respectively. This growth was juxtaposed against a backdrop of stagnation or decline experienced by several international platforms, notably Disney Plus, whose user base fell significantly, underscoring the evolving consumer landscape in South Korea.

  • The successful launch of unique and localized content, particularly in the realm of live sports, became a cornerstone of domestic platforms' strategies. Tving thrived on its exclusive rights to Korean professional baseball, facilitating a substantial uptick in MAUs as sports viewership surged. This strategic focus on emerging viewer interests hinted at a broader trend wherein niche and localized content began overshadowing the wider but often homogenized offerings from global giants.

  • 2-3. Role of mobile data analytics

  • The role of mobile data analytics became increasingly crucial in shaping content strategies for South Korea's OTT platforms during the first half of 2024. Insights derived from mobile user interactions provided domestic services with tangible data to refine their offerings. Mobile index reports indicated that Tving's proactive adaptation to viewer preferences through its content library, which included a blend of original programming and popular sports events, played a key part in its rise.

  • Furthermore, traditional market metrics provided clarity on subscriber behavior and engagement levels, aiding these platforms in optimizing marketing strategies and content acquisition efforts. Data-driven decision-making facilitated not only an understanding of user trends but also promoted innovation in service offerings, positioning domestic players favorably against a backdrop of evolving global competition.

3. Tving’s Surge in User Engagement

  • 3-1. MAU growth and narrowing gap with Netflix

  • As of September 2024, Tving recorded a significant milestone with 7.83 million monthly active users (MAU), marking the closest it has ever come to Netflix's MAU of 11.21 million. This narrowing gap signals the intensifying competition within South Korea's over-the-top (OTT) market, where Tving's consistent growth emerges as a key trend against the backdrop of shrinking user numbers for international platforms like Netflix. Competitor analysis reveals that while Netflix faced a dip of approximately 180, 000 users within a year, Tving has been on an upward trajectory, establishing itself as a formidable player. The surge in user engagement not only reflects Tving's ability to capture market share, but also speaks to larger shifts in consumer preferences within the industry.

  • 3-2. Impact of sports and exclusive content

  • One of the pivotal factors contributing to Tving's rise is its strategic focus on exclusive sports content. As evidenced during the first half of 2024, Tving leveraged its exclusive rights for KBO League broadcasts, which resonated with South Korean audiences seeking live sports events. This focus on sports allowed Tving to differentiate itself from competitors, drawing viewers who prefer real-time engagement over traditional on-demand content. The introduction of a new advertising-supported subscription plan also played a role in this growth, combining affordability with comprehensive access to high-definition content across multiple devices. Such tailored offerings illustrate Tving's adeptness at aligning its strategy with consumer interests, particularly in a time when other platforms struggled to maintain viewer engagement.

  • 3-3. Platform differentiation strategies

  • Tving's competitive advantage lies in its platform differentiation strategies, which are increasingly essential in a crowded market. Apart from its sports offerings, Tving has expanded its content library to include a broad spectrum of genres. This diversification has been crucial in appealing to a wider audience and enhancing user retention. The company has adopted a data-driven approach to recommending content tailored to individual viewer preferences, which has proven effective in increasing user engagement and longevity. This focus on user-centric content strategies, combined with a unique advertising-supported subscription model, has positioned Tving as a leader in innovative market strategies, allowing it to maintain growth even as the overall OTT market experiences stagnation.

4. Coupang Play and Other Domestic OTT Growth

  • 4-1. Coupang Play’s year-on-year rise

  • Coupang Play has seen a remarkable rise in its user base over the past year, particularly evidenced by its total Monthly Active Users (MAU) that increased significantly to 685, 000 in August 2024. This rise translates to a notable year-on-year growth of approximately 12.1% compared to previous figures. The growth is attributed to several strategic initiatives undertaken by the platform, prominently including the acquisition of exclusive sports content, which proved to be a substantial draw for new subscribers. Notably, Coupang Play’s investment in broadcasting major sports events, such as the Asian Cup and their partnership with renowned international football clubs for live matches, has been a critical factor contributing to this growth trajectory.

  • Furthermore, during a period when competitors were witnessing stagnation or decline, Coupang Play's strategic enhancements to its content library and membership offerings, including the differentiated benefits of the Coupang membership service, have positioned it favorably against global giants like Netflix. In fact, even amid significant price increases for their membership fees, Coupang Play maintained subscriber retention, underscoring the perceived value of its bundled offerings that combine streaming services with various e-commerce benefits.

  • 4-2. Performance of Wave and Watcha

  • While Coupang Play has thrived, its rivals have also made strides, albeit with varying degrees of success. Wave has struggled somewhat to maintain consistent growth, experiencing minimal fluctuations in its MAU figures, which hovered around 440, 000 as of late 2024. The platform's efforts to revive its offering through the relaunch of classic dramas in a remastered series format have not yielded the desired effect of substantial user acquisition. This stagnation presents a stark contrast to the vibrant growth achieved by Coupang Play and Tving in the same timeframe.

  • Watcha, on the other hand, has been successfully engaging users through its unique recommendation algorithms and content curation, yet it has failed to match the aggressive growth rates seen by Coupang Play and Tving. The competitive landscape remains fierce, compelling platforms like Wave to introduce promotional strategies, such as discounted subscription fees for first-time users, to entice new subscribers in a saturated market.

  • 4-3. Domestic OTTs’ collective momentum

  • The growth trajectory of Coupang Play is part of a broader collective momentum within South Korean domestic OTTs, particularly Tving, which also reported significant user base increases. By September 2024, Tving's MAU reached 7.83 million, positioning it closer to Netflix's numbers than ever before. This collective surge indicates a shifting landscape where domestic players are effectively capturing market share from established foreign competitors, largely attributed to a robust lineup of localized content tailored to the preferences of South Korean viewers.

  • The momentum gained by these domestic OTT platforms has led to heightened competition, prompting larger players like Netflix to reassess their strategies and diversify their content offerings to retain their user base amidst growing threats. The diverse approach of domestic OTTs focusing on sports content, popular dramas, and strategic pricing has enabled them to carve out a significant niche within the highly competitive arena of video streaming services.

5. Netflix’s Slowing Momentum

  • 5-1. Decline from peak MAU levels

  • As of late 2024, Netflix's monthly active users (MAU) dropped to approximately 11.21 million, a significant decline from a peak of 14 million in early 2024. The stagnation in MAU has been attributed to the absence of major hit content following the success of the series 'The Glory'. Since then, the platform has struggled to generate new engaging series that captivate its audience, contributing to the current plateau in user engagement. In comparison, local competitors such as Tving and Coupang Play have seen considerable growth during the same period.

  • 5-2. Content pipeline challenges

  • One of the primary challenges facing Netflix has been its content pipeline. The shift in focus toward cost management and stringent budgeting has impacted the frequency and quality of new releases. According to industry reports, the strategic decision to reduce expenditure on content production was justified as a way to maintain profitability; however, this led to a diminished appeal for subscribers looking for fresh, compelling offerings. Concurrently, the increased emphasis on account-sharing restrictions may have dissuaded some users, as they perceive it as a barrier rather than a benefit, further aggravating the decline in MAU.

  • 5-3. Market saturation and retention issues

  • The OTT market in South Korea is showing signs of saturation, which has strained Netflix's growth potential. With domestic platforms like Tving and Coupang Play continually increasing their user bases, Netflix faces intense competition that has eroded its previously dominant standing. In recent months, reports indicated that despite the global push for subscriber retention strategies, local services have successfully captured market share by offering localized content and sports broadcasting rights that resonate more with the South Korean audience. Tving's exclusive rights to KBO games and coupang Play's notable sports events have proven particularly effective in attracting users away from Netflix. Furthermore, the perception of Netflix's value proposition is being challenged, compelling the platform to reassess its marketing and content acquisition strategies to stay relevant in an increasingly crowded market.

6. Market Competition and Future Outlook

  • 6-1. Emerging differentiation and bundling strategies

  • As competition intensifies in South Korea's OTT market, platforms are increasingly adopting innovative differentiation and bundling strategies to attract and retain subscribers. Tving and Coupang Play have especially capitalized on their unique content offerings, with Tving focusing on sports rights and localized dramas, while Coupang Play aims to enhance viewer engagement through its integration with its membership services. Predictions indicate that these platforms may continue to bundle their services with other offerings—such as e-commerce and streaming benefits—creating a value proposition that is difficult for global players like Netflix and Disney+ to match. This dynamic is akin to models seen in other industries, where ecosystems create a stickiness for consumers, blurring the lines between different types of subscriptions and increasing overall user engagement and loyalty.

  • 6-2. Predicted OTT subscriber trends for 2025

  • Looking ahead to 2025, the South Korean OTT landscape is expected to undergo significant shifts. Analysts anticipate that Tving and Coupang Play will continue their upward trajectory, with subscriber growth resulting from a robust lineup of exclusive content and effective marketing strategies. Tving may potentially surpass Netflix in the number of monthly active users (MAU) as it solidifies its position as a top-tier sports content provider. Meanwhile, Coupang Play is projected to sustain its growth momentum by leveraging its position as a versatile platform that functions not only as an entertainment service but also as a shopping utility through its Coupang membership integration. Conversely, if Netflix fails to re-establish its momentum with compelling new content, it may lose further ground to these emerging competitors, potentially experiencing a decline in the user base it once dominated.

  • 6-3. Implications for global and domestic players

  • The implications of these emerging trends extend both to domestic and global players in the OTT industry. For domestic platforms like Tving and Coupang Play, the ability to innovate continuously will be paramount, particularly in relation to consumer preferences that are rapidly evolving. They must not only cater to traditional viewership patterns but also adapt to new consumption habits that favor mobile and on-demand content, especially among younger audiences. Conversely, for global players like Netflix and Disney+, this evolving competition may necessitate a reevaluation of their content strategies in South Korea, emphasizing not just the import of titles, but also significant investments in local production and partnerships. Failure to effectively respond to these domestic trends may see them relegated to a secondary position in a market that is increasingly favoring uniquely localized content and service offerings.

Conclusion

  • As of May 2025, the paradigm shift within the South Korean OTT market reflects a broader evolution in viewer behaviors and preferences, moving away from a Netflix-centric model toward a more diversified array of offerings by domestic players like Tving and Coupang Play. The competition landscape has become increasingly fierce; Tving’s rapid growth fueled by impactful localization strategies and an emphasis on sports content underscores a critical inflection point. Meanwhile, Coupang Play's ability to sustain double-digit user gains highlights the effectiveness of innovative bundling strategies that combine streaming with e-commerce benefits, setting the stage for continued competitive momentum.

  • Looking ahead, the importance of strategic partnerships and the effective adaptation of content offerings will be paramount for success in 2025 and beyond. Tving and Coupang Play's focus on consumer-centric content strategies positions them favorably against the backdrop of a rapidly evolving competitive landscape. Conversely, for Netflix, the current plateau in MAU raises pressing concerns about future relevance unless accompanied by substantial investments in unique and compelling content tailored to the tastes of South Korean audiences. The decision to diversify and innovate will be vital for all players, particularly as they seek to not only retain existing subscribers but also attract new audiences in a market characterized by rapidly shifting dynamics.

  • Ultimately, stakeholders must remain vigilant and responsive to changing consumer behaviors, leveraging insights from data analytics to refine their offerings continually. The future of the OTT landscape in South Korea hinges on the ability to innovate and meet emerging viewer demands—crafted through distinctive content portfolios and strategic alliance formations that resonate profoundly with local audiences.

Glossary

  • Tving: A South Korean Over-the-Top (OTT) media service that has rapidly gained market share through strategic content offerings, especially exclusive sports broadcasting rights. As of early 2025, Tving is seen as a formidable competitor to Netflix in the South Korean market.
  • Coupang Play: A domestic streaming service in South Korea that has witnessed significant user growth, fueled by exclusive sports content and innovative bundling with e-commerce services. By May 2025, it is positioned strongly within the competitive OTT landscape.
  • Netflix: An international streaming giant that has experienced a decline in user engagement in South Korea, with a drop in monthly active users (MAU) due to strategic challenges and competition from domestic platforms like Tving and Coupang Play.
  • OTT (Over-the-Top): A type of media service that delivers content over the Internet without the involvement of a traditional cable or satellite television service. In the context of South Korea, the OTT sector is becoming increasingly competitive.
  • MAU (Monthly Active Users): A metric used to measure the number of unique users who engage with a service over a month. This metric is crucial for assessing the engagement and growth of platforms like Tving, Coupang Play, and Netflix.
  • Market Competition: The ongoing rivalry among various OTT platforms in South Korea, particularly between international players like Netflix and domestic services such as Tving and Coupang Play. This competition is intensifying as consumer preferences shift towards localized content.
  • User Engagement: A measure of how much users interact with a service, including metrics like viewing time and frequency of visits. Effective user engagement strategies are essential for the success of streaming platforms within the competitive landscape.
  • Sports Content: A genre of programming that includes live sports broadcasts and related content. In South Korea, exclusive sports content has become a key lever for domestic OTT platforms to drive subscriber growth and user engagement.
  • Market Saturation: A state in which a market is no longer growing because most demand has been met. As of early 2025, the South Korean OTT market is facing saturation, leading to increased competition and necessitating strategic shifts from major players.
  • Mobile Index: A tool or metric that analyzes mobile data to derive insights about user behavior and preferences. For OTT platforms like Tving, mobile indexing has played a crucial role in optimizing content offerings and enhancing user engagement.
  • Differentiation Strategies: Techniques used by platforms to distinguish their offerings from competitors. In the context of Tving and Coupang Play, these strategies include exclusive content rights and innovative subscription models.

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