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Tving’s Surge and the Fracturing of Netflix’s South Korean Stronghold

General Report May 18, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Evolution of South Korea’s OTT Market
  3. Key Growth Drivers for Domestic OTT Platforms
  4. Netflix’s Waning Lead and User Trends
  5. Future Outlook and Competitive Strategies
  6. Conclusion

1. Summary

  • As of mid-May 2025, the South Korean OTT market has experienced a profound shift, transitioning from Netflix's previous dominance to a highly competitive environment characterized by the rapid ascent of domestic platforms like Tving and Coupang Play. Between late 2023 and mid-2024, Netflix's Monthly Active Users (MAU) saw a decline from 14 million to 11.2 million, while rigorous domestic competitors recorded remarkable growth. Data from the IGAWorks Mobile Index reveals that Tving's user base expanded significantly, highlighting the platform’s focused strategies on localized content and exclusive sports programming. By September 2024, Tving reduced the MAU gap to just 3.4 million compared to Netflix. This shift in viewer preference not only illustrates a changing landscape but also underscores the importance of tailored content that resonates with local audiences, contributing to a more dynamic OTT environment.

  • The analysis of competitive strategies reveals that domestic OTT platforms have strategically addressed viewer demand for locally relevant narratives. Tving and Coupang Play have successfully employed localized content strategies, aligning closely with the cultural and social dynamics prevalent in South Korea. Furthermore, Tving's acquisition of exclusive rights to domestic sports events has attracted significant viewer engagement, effectively diversifying its subscriber base. As traditional barriers decline, the insights provided here indicate a broader trend towards localized content as an essential driver of viewing behavior, and the emphasis on culturally resonant storytelling remains pivotal in garnering audience loyalty in this evolving market.

  • Overall, the burgeoning competition illustrates an essential aspect of the industry: consumer preferences are shifting towards offerings that combine unique local content with quality production values. The evolution of this market will require ongoing observation, particularly as platforms continue to innovate and adapt to the ever-changing demands of South Korean audiences. The implications for Netflix in maintaining its relevance amidst the rise of domestic players present critical considerations for its future strategies.

2. Evolution of South Korea’s OTT Market

  • 2-1. Early dominance of Netflix (pre-2024)

  • Before 2024, Netflix firmly established itself as the dominant player in South Korea's OTT (over-the-top) market, boasting a robust library of international content and global branding. However, this dominance began to weaken as domestic platforms started to claim a larger share of the market. By the end of 2023, Netflix's Monthly Active Users (MAU) had peaked at 14 million, thanks in part to its exclusive content and well-established user base. Yet, signs of a shift were evident; growing competition from local platforms like Tving and Coupang Play started to erode Netflix's once-uncontested lead.

  • 2-2. MAU shifts from December 2023 to June 2024

  • From December 2023 to June 2024, a significant transition unfolded within South Korea's OTT landscape. During this period, data revealed that while Netflix's MAU dwindled to 11.2 million by mid-2024, Tving and Coupang Play experienced notable growth. Tving's MAU surged from 574, 000 in June 2023 to an impressive 783, 000 by mid-2024, showcasing a 5.6% increase in just one month. Similarly, Coupang Play's rise was remarkable, with its MAU hitting 685, 000, reflecting a robust 12.1% increase. This growth was propelled by Tving's sports content strategy, particularly its successful partnerships for exclusive rights to domestic sports events, which resonated well with local consumers who showed increased demand for live sports content.

  • 2-3. September 2024 market snapshot

  • As of September 2024, the competitive landscape of the OTT market showed marked changes, with Tving notably narrowing the gap with Netflix to just 3.4 million MAU. Tving's success was attributed to its strategic focus on locally tailored originals and exclusive sports programming, including a successful launch of its offerings that catered to the increasing demand for sports viewership amid stagnating growth for many international players. On the other hand, Netflix's decline was exacerbated by a lack of compelling new releases following its hit show 'The Glory'. This snapshot illustrated the intensifying competition that marked the latter part of 2024, highlighting how domestic services were increasingly gaining ground against their international counterparts.

3. Key Growth Drivers for Domestic OTT Platforms

  • 3-1. Localized content strategies

  • One of the foremost drivers of growth for domestic OTT platforms like Tving and Coupang Play is their focused approach on localized content strategies. By prioritizing content that resonates with the cultural and social dynamics of South Korea, these platforms have effectively captivated their audience. Unlike global rivals like Netflix, which historically relied on a broadly international content strategy, Tving has tailored its offerings to include a rich mix of local dramas, variety shows, and original programming that appeals directly to South Korean consumers. This localized content not only meets the preferences of domestic viewers but also helps in establishing a strong emotional connection, fostering loyalty and repeat viewing among subscribers.

  • Collaborations with local filmmakers and scriptwriters have further enabled these platforms to produce content that mirrors the realities of Korean society. As evidenced by Tving’s recent chart-topping local series, which reflect sociocultural issues, the platform has capitalized on storytelling that viewers can relate to. This strategy has allowed Tving to differentiate itself in a market dominated by international content, thus carving out a substantial segment of the audience that prefers homegrown narratives.

  • 3-2. Exclusive sports rights and live events

  • The acquisition of exclusive sports broadcasting rights represents another significant growth driver for domestic OTT providers. Historically, live sports have garnered high viewer engagement and draw substantial audiences. Tving's strategic move to secure exclusive rights to major domestic sports events, particularly in baseball and soccer, has not only attracted sports enthusiasts but also diversified its subscriber base beyond traditional drama and film viewers.

  • For instance, the exclusive online streaming rights to the Korean Baseball Organization (KBO) and select international sports events have led to spikes in monthly active users (MAUs) during the sports seasons. Reports from the latter part of 2024 indicated that Tving's proactive engagement with sports content—specifically real-time broadcasts—contributed to their MAU growth, illustrating the efficacy of this approach. As the demand for live sports remains robust, platforms that continue to innovate in this space are likely to maintain or enhance their market positions.

  • 3-3. Partnerships with Korean production houses

  • Strategic partnerships with local production houses are proving vital for the growth trajectories of Tving and Coupang Play. Such collaborations not only streamline the production process but also enhance content quality. By leveraging the expertise of well-established Korean production teams, these OTT platforms are able to offer viewers a blend of new and culturally resonant content that aligns with local expectations and preferences.

  • Recent data revealed an upward trend in co-produced shows, which feature collaborations that allow for combined resources and share risks in content creation. This cross-collaboration has been instrumental as it capitalizes on the strengths of multiple entities, from scriptwriting to post-production—leading to richer, more diverse content offerings. Additionally, consumers have increasingly shown a preference for content that comes directly from their cultural context, further validating the significance of these partnerships in enhancing viewer engagement and retention.

4. Netflix’s Waning Lead and User Trends

  • 4-1. Decline from 14 million to 11 million MAU

  • As of May 2025, Netflix's monthly active users (MAU) have seen a considerable decline from a peak of approximately 14 million recorded in early 2024 to just 11 million. This downturn reflects a significant shift within the South Korean OTT market, which has been increasingly characterized by competition from local players like Tving and Coupang Play. According to data from Mobile Index, following the resounding success of the series 'The Glory, ' Netflix struggled to replicate such levels of viewership enthusiasm with subsequent releases. The stagnation in hit content and the challenges posed by account-sharing restrictions, which are perceived to squeeze subscriber growth, have further contributed to this decline.

  • 4-2. Impact of flagship series performance

  • The performance of flagship series has played a critical role in Netflix's user trends. 'The Glory' was a notable success, capturing significant viewership and critical acclaim, which positively impacted MAU. However, after this peak, Netflix's release schedule has not sustained similar momentum. Reports indicate a growing dissatisfaction among users citing a lack of compelling new content as a detrimental factor affecting retention rates. The overall sentiment within the subscriber base indicates that while the brand's library remains extensive, the recent lack of appealing originals has led to a notable dip in engagement.

  • 4-3. Comparison with Tving’s 7.83 million MAU

  • In stark contrast, Tving has been carving out a strong niche in the increasingly competitive OTT landscape, boasting 7.83 million MAU as of late 2024. Tving's strategy to focus on localized content and exclusive sports rights has resonated with Korean audiences, enhancing its appeal amid Netflix's declining user metrics. Tving capitalized on the increasing appetite for live sports, specifically the Korean professional baseball viewership, which has helped propel its user base significantly. Additionally, Tving's successful collaborations with local producers have produced content that resonates culturally, catering to the specific tastes of Korean viewers, thus solidifying its competitive edge against Netflix.

5. Future Outlook and Competitive Strategies

  • 5-1. Projected MAU trajectories for 2025

  • As of May 2025, the battle for market share in South Korea's OTT landscape is projected to become increasingly fierce, with significant implications for monthly active users (MAU) across platforms. Analysts forecast that Tving may experience a substantial surge in MAU, potentially exceeding 10 million by the end of 2025, driven by its aggressive local content strategies and expanding sports rights partnerships. Conversely, Netflix's user base is expected to struggle to fully recover, projected to stabilize around 11 million MAU, reflecting a critical pivot point in the competitive dynamics of Korean streaming services. The implications of these projections underscore that both Tving and Coupang Play will continue to encroach on Netflix's user demographics, particularly among younger audiences seeking unique local content.

  • 5-2. Potential content investments and global licensing

  • Looking ahead, substantial content investment remains a focal point for all competing OTT platforms in South Korea. Tving, having secured impressive viewership through original series, is likely to continue ramping up its investment in local productions and acquiring exclusive rights to significant Korean sports events, which are crucial for attracting sports enthusiasts. Concurrently, Netflix has been seen pursuing strategic licensing agreements with local creators and international brands to diversify its content library while retaining a global perspective. This mixture of local and global content investment will be vital for retaining existing subscribers and attracting new ones as consumer preference continues to trend towards platforms that offer tailored experiences.

  • 5-3. Technological enhancements and platform bundling

  • As the streaming landscape evolves, technological advancements will play an essential role in differentiating OTT services. Tving is positioned to enhance user engagement through innovations like improved recommendation algorithms, seamless streaming experiences, and platform bundling options that may include partnerships with telecommunications companies or other media entities. Such bundling strategies could provide a competitive edge, facilitating easier access to content for users and potentially leading to increased subscription rates. Meanwhile, Netflix is anticipated to maintain its focus on enhancing user interfaces and data analytics to personalize viewing experiences further, which is crucial for sustaining viewer loyalty amid rising competition.

Conclusion

  • The transformation witnessed in the South Korean OTT market signifies a substantial pivot in consumer behavior and industry dynamics. Domestic platforms, primarily Tving, have embraced strategies that capitalize on local strengths, marked by significant user engagement through tailored content and strategic sports rights acquisitions. As of May 2025, the implications of these strategies are evident in the narrowing gap in MAU between Tving and Netflix, signifying a critical moment for streaming services in the region.

  • The future trajectory of the OTT landscape in South Korea will rely heavily on several key elements: sustained investment in original content that speaks to local audiences, expansion of live streaming offerings, and the pursuit of technological innovations that enhance user engagement. Platforms that can effectively weave together the global appeal of varied content with localized storytelling will likely lead the market. The insights gained from this analysis can guide industry stakeholders in paving the way for a more integrated and viewer-centric approach to streaming services.

  • In conclusion, the competitive ecosystem in South Korea's OTT market is set to intensify. Both established providers and emerging platforms must engage in a balance of innovation and adaptation to fulfill the expectations of an increasingly sophisticated viewer base. The capacity to blend international perspectives with culturally grounded narratives will be crucial as the next chapter in streaming unfolds, shaping the industry's future in Korea.

Glossary

  • OTT: OTT, or 'over-the-top', refers to content delivered over the internet directly to viewers, bypassing traditional broadcast or cable platforms. This service model has gained immense popularity, especially in South Korea, leading to fierce competition among local and international streaming providers, such as Netflix and Tving.
  • MAU: MAU stands for 'Monthly Active Users.' This metric indicates the number of unique users who engage with a service over the course of a given month. As observed in the competitive landscape of South Korea's OTT market, changes in MAU are crucial indicators of service popularity and user retention.
  • Mobile Index: The Mobile Index is a tool developed by IGAWorks that tracks mobile app usage and user engagement across various platforms in South Korea. It provides insights into user behavior and trends within the OTT market, highlighting shifts in viewer preferences as seen in the competition between platforms like Netflix, Tving, and Coupang Play.
  • Localized Content: Localized content refers to media specifically developed or tailored to appeal to a particular cultural or regional audience. In the context of South Korea's OTT platforms, such as Tving, this strategy has been essential in attracting and retaining viewers by addressing their specific tastes and cultural norms.
  • Exclusive Sports Rights: Exclusive sports rights are agreements that grant a platform the sole privilege to broadcast certain sports events. This strategy has been a key growth driver for Tving, which has secured rights to major domestic sports, attracting large audiences and increasing their user base through dedicated sports content.
  • Coupang Play: Coupang Play is a South Korean OTT service owned by Coupang, known for its focus on local content and competitive pricing strategies. As of May 2025, it is one of the primary competitors to Netflix and Tving in the South Korean streaming landscape, emphasizing differentiated content offerings.
  • Digital Media: Digital media encompasses all forms of media content that are created, distributed, and consumed in digital formats. This includes streaming services, social media, online advertising, and more. The term is particularly relevant in analyzing current trends in consumer behavior in the South Korean OTT market.
  • Streaming Competition: Streaming competition refers to the rivalry among digital platforms offering video content online. In South Korea, this competition has intensified, primarily between Netflix and local players like Tving and Coupang Play, leading to evolving strategies that cater to unique audience demands.
  • Growth Trend: Growth trend describes the general direction in which market demand or user engagement is moving over a specified period. In the context of the South Korean OTT market, growth trends highlight the shifting preferences from international platforms like Netflix towards stronger local offerings by Tving and Coupang Play.
  • South Korea: South Korea is a nation in East Asia known for its advanced technology and dynamic entertainment industry. As of May 2025, it features a robust OTT market characterized by rapid growth of domestic platforms and evolving viewer preferences influenced by cultural factors and content localization.
  • Sports Content: Sports content refers to any media that involves live or recorded sports events, related commentary, or associated programming. Its significance has surged in South Korea's OTT landscape, with platforms like Tving leveraging exclusive sports rights to attract and engage viewers.

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