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HomeK-Pop[In-depth Report] Relying on Netflix to make money? The cruel reality unveiled in the Korean drama industry: it will eventually be strangled!
K-PopK-Biz

[In-depth Report] Relying on Netflix to make money? The cruel reality unveiled in the Korean drama industry: it will eventually be strangled!

阿咩李卡諾7/23/2023 1 min read

News broke last month that the Korean Original creation team of Disney + is suspected of disbanding, with not only the members of the team leaving Disney +, but also rumors that it is related to Disney's global layoffs.

Image Source l disneypluskr
Image Source l disneypluskr

According to a report by the Korean media outlet Chosum, industry insiders have revealed that 15 members of the Korean original content development team at the international OTT platform, Disney+, have left the company, but the original content they produced is currently being retained.

Image Source l disneypluskr
Image Source l disneypluskr

There has been no official statement regarding the disbandment of the South Korean Disney+ original content development team. However, external analysis suggests that the reason for the team's dissolution is due to its failure to achieve significant growth within South Korea.

Image Source l disneypluskr
Image Source l disneypluskr

In fact, Disney+ began its services in South Korea on November 12, 2021. However, as of May this year, the number of active users of Disney+ in Korea is approximately 1.79 million, which is less than the same period's membership numbers of local OTT platforms such as tving (5.15 million), Coupang Play (4.31 million), and Wavve (3.92 million).

阿咩李卡諾

阿咩李卡諾

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[Hot Topic] Dispatch revisits past lawsuit doubts over Son Seong Yeon, questioning if the 'FIFTY FIFTY' producer is a habitual offender! K-Pop

[Hot Topic] Dispatch revisits past lawsuit doubts over Son Seong Yeon, questioning if the 'FIFTY FIFTY' producer is a habitual offender!

Recently, the FIFTY FIFTY incident has been making huge noise. Producer Ahn Seong-il is accused of using the same tactic to exploit Son Sung-wan. Korean media Dispatch has even dug out a fake disposition judgement made for Son Sung-wan in 2017. Many netizens also point out that Ahn Seong-il is a habitual offender. In February 2017, the Seoul Central District Court rejected all applications for the case, with the litigation costs borne by Son Seung-yeon. It is known that Son Seung-yeon signed an exclusive contract with Fortune company in 2012, and terminated the contract four years later through email notification. At the time, the reasons Son Seong Yeon demanded for contract termination were, ① The previous agency Fortune failed to produce a new album, ② Son Seong Yeon didn't profit from Fortune, ③ Fortune was not supportive or obstructed her entertainment activities, ④ Fortune did not fulfill its liquidation obligations, ⑤ Fortune refused or hindered her participation in musical supports, and ⑥ Fortune forced Son Seong Yeon to publicly disclose her home environment, etc. The court pointed out that even though the agency did not produce one new album every year, it had produced more than three singles on average annually. Therefore, it is hard to view this as a breach of contract. The other reasons were also considered by the court to be unreasonable and were dismissed, hence the case request was not accepted and was rejected. As of April 2018, two months after Son Seung-yeon terminated her contract with Fortune, she signed an exclusive contract with 24th Street, which is represented by Ahn Seong-il. Ahn Seong-il had arranged Son Seung-yeon's cover of "The First Snow's Falling" in 2014, which was followed by an event where Son Seung-yeon requested to terminate the contract. It led many netizens to associate this with the recent FIFTY FIFTY incident. Korea media also revealed that Son Seung-yeon once posted on Instagram thanking producer An Seong-il, even calling him the "representative oppa". Many netizens responded to the incident by saying, "She actually called the representative oppa..." and "I don't want to see her play anymore, representative oppa...". Other netizens also pointed out, "At first I thought it was Son Seung-yeon's former agency's fault, but behind it was An Seong-il. He really is a gangster terminator," "That poor agency! It even went bankrupt..." "If you want to sign with the person you want, you have to wait until the contract expires. It's wrong to blame a decent agency and then unfairly cancel the contract," "An Seong-il is a repeat offender."

Image Source l  netflixkr
Image Source l  netflixkr

However, if we look at Netflix, which is also an international OTT platform, it not only continues to lead the development of original content in Korea, but has even released many acclaimed and popular works. But recently, Korean media has conducted an in-depth analysis that the current development of Korean drama is facing a pressing crisis.

Image Source l  netflixkr
Image Source l netflixkr

According to a report by Korean media "Herald Economy," although K-Content (cultural content) has been very active internationally in recent years, Korean dramas, which are considered a major influence, are facing significant crises. The report points out current issues such as the escalating production costs of Korean dramas, over-reliance on Netflix, threats to domestic OTT platforms, and overall reduction in Korean drama production.

Image Source l  netflixkr
Image Source l netflixkr

Reports indicate that due to the recent linear rise in television production costs, from about 700 million Korean won per episode a few years ago to 1 billion or even 1.5 billion won per episode, not every production company can afford such large numbers under this kind of competition.

Image Source l  netflixkr
Image Source l netflixkr

Even after investing a significant amount of funds, no matter how successful the drama might be or how well-known the work becomes, it is still impossible to recoup the production costs. Thus, if one truly wants to gain abundant resources and break into Netflix, it seems that one will still have to line up and wait for now.

Image Source l  wavve.official
Image Source l wavve.official

There aren't many platforms that can bear such huge production costs, which has caused an imbalance in the entire industry. Although there are now many local OTTs rising in South Korea, the majority of the situation still relies on a single model, which is quite dangerous for the industry.

Image Source l tving.officia
Image Source l tving.officia

A representative from a certain TV production company said, "The trend of Korean dramas constantly entering the global OTT platform, Netflix, is inevitable, and it is only a matter of time before this kills the circulation and diversity of the market and platform."

Image Source l netflixkr
Image Source l netflixkr

Due to the issues that arose from the initial production costs, it was possible to produce TV dramas in the past without investing a high amount of production cost. However, it is feared that we have now reached the limit, creating a market cycle of "over-betting large amounts of money to gain substantial returns".

Image Source l netflixkr
Image Source l netflixkr

For instance, the annual production of dramas used to be around 100-150, but due to a surge in production costs, it has reduced by at least half, leaving only about 70. According to statistics by the Korean media《Herald Economy》, even the 'mini-series' produced by the three major TV stations have deficits of several hundreds of millions or even billions.

Image Source l mbcdrama_pre
Image Source l mbcdrama_pre

This phenomenon is also happening on broadcast television, such as the recent production of many popular shows by JTBC and tvN, two cable TV stations. Even if all advertisements are sold out during the drama broadcast time, they still face deficit.

Image Source l jtbcdrama
Image Source l jtbcdrama

Therefore, many TV stations have started to fill in the gaps left by the dramas they could not recover by adding variety shows. As even large-scale variety shows do not cost as much to produce as dramas, channels like tvN have begun producing a range of variety shows, primarily those that can be exported overseas.

Image Source l tvn_drama
Image Source l tvn_drama

Even though the industry behind Korean dramas may seem far removed from the audience, it's hard to imagine the many connections behind each successful work, from 8-episode mini series to regular 16-episode dramas, each having different impacts. (To be continued)

Image Source l jtbcdrama
Image Source l jtbcdrama
Caridee小編3 years ago
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Admin3 years ago
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[In-depth Report] Making a documentary only a few years after debut? The real reason why the industry is rushing to produce idol documentaries on OTT.K-Pop

[In-depth Report] Making a documentary only a few years after debut? The real reason why the industry is rushing to produce idol documentaries on OTT.

Whether it's dramas or films, everyone has their own different preferences. However, to invoke the resonance and attention of the majority, besides being entertaining, it's equally important to possess mass appeal. However, when it comes to the entertainment industry, the speed of Kpop's global spread is quite fast, not only sweeping across Asia, but also gradually expanding to the European and American markets. However, compared to the global music market, it still cannot be called popular or mainstream. In other words, Kpop relies more on a solid fan base than casual listeners to maintain a large volume of listens in a short period of time. Given the certain limitations of Kpop and idol-themed content, why have OTT platforms continued to produce idol-themed documentaries over the past two or three years? And besides fans, do people actually watch these documentaries? Unlike typical TV and film productions that have clear scripts and character settings, documentaries express events and experiences from a narrative perspective. Therefore, they mostly attract an audience interested in the event, field, or specific subject matter. Even though the audience for documentaries is quite limited, it's not hard to notice that many OTT platforms have been rushing to produce idol documentaries in recent years.According to the report by Korean media 'Spotvnews', the continuous production of idol documentaries is not only to showcase the glamorous side of idols on stage, but also to reveal the reality behind the scenes. A producer from a certain planning company in the industry said, "From the standpoint of a content creator or from the public's perspective, idol group members are very interesting characters." To elaborate further, "As an artist, one needs to present a world view or performance that aligns with a specific group's direction set by the company. However, they also need to demonstrate perfection and casual charm on stage, indirectly showcasing the dual burdens that idols carry, unable to fully express themselves". How to select shooting groups and talents? Industry insiders revealed that due to the competition of more diverse content, from the perspective of the industry, the number of groups that have recently received strong attention has increased. Under the circumstance where the public's preferences are increasingly subdivided, even if only focusing on one team or one member, it can fully arouse meaningful attention. However, it's not to say that only top idols are eligible for documentary films. As mentioned earlier, due to the certain limitations of the documentary audience, if groups with more topicality or popularity start first, it would be easier to attract the audience. In 2020, Netflix produced "BLACKPINK: Light Up the Sky" with the girl group Blackpink, and Disney+ actively planned documentaries centered around Korean idols.Like the BTS documentary 'BTS Monuments: Beyond the Star', and the individual documentary of member J-Hope, 'j-hope IN THE BOX'. In addition, there are the behind-the-scenes stories of Super Junior, who have been in the industry for 18 years, in "Super Junior: The Last Man Standing". The younger group, NCT 127, has produced "NCT 127: The Lost Boys" based on their world tour process. Also, "TOMORROW X TOGETHER: OUR LOST SUMMER" is set to be released this month. In fact, promoting or marketing idol artists through documentaries is an alternative way to reach new audiences. Although most of the content in the film is likely to resonate with fans, it is also through a narrative mode that allows idol artists to show a different side than what the public usually sees, compared to on stage or in a dynamic mode.

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