South Korea’s paid-for online video market is projected to more than triple to $433m in 2021 from $142m in 2016, according to IHS Markit.
This market is one of the biggest in Asia, with annual average revenue per user at $97 for subscription services in 2016, compared to $103 in Japan and $31 in China.
This follows another IHS Markit report on higher ad revenues in Asia.
“South Korean consumers are more willing to pay for premium content now, and most of them will have multiple streaming subscriptions in the future,” said Jun Wen Woo, analyst at IHS Markit.
“High smartphone adoption, availability of low-priced subscription services, as well as the entrance of new local and international services, will also contribute to the growth of the market,” she added.
The paid-for online video market in South Korea includes subscription and transactional business models. POOQ and TVing are two notable online video subscription services with regards to subscriber numbers, while Google Play Movies dominate the transactional business with more than two-thirds of market share in revenue. The Apple iTunes store is currently unavailable in South Korea.
South Korean pay TV providers, KT, SK Telecom and LG Uplus, as well as media company CJ E&M and major broadcasters, have expanded into digital, following the popularity of watching video on smartphones and tablet PCs.