Netflix CEO Responds to Illegal Streaming, Says It's Harming the Health of the Creative Ecosystem

Netflix co-CEO Ted Sarandos explained the current state of the content industry, saying that young people don't just want short form.

At 10:30 am on the 22nd, a meeting was held at the Four Seasons Hotel in Gwanghwamun, Jongno-gu, Seoul, to talk about Netflix and Korean content. The event was attended by Netflix co-CEO Ted Sarandos, Netflix content managers, and domestic content creators.

At the event, we talked about the Netflix collaboration experience of the creators, who are the protagonists of Korean content, and the future vision of Korean content. In particular, Ted Sarandos visited Korea for the first time since he was appointed co-CEO of Netflix. Ted Sarandos started as Netflix CCO (Chief Content Officer) in January 2000 and rose to the position of Netflix Co-CEO in July 2020.

Netflix, which emphasizes 'storytellers' in name and reality with various countries and fresh stories, talked about the compensation of Z creators who collaborate. Ted Sarandos, CEO of Netflix, said, “We make sure that creators are fully compensated. Because it is a highly competitive market, it can also fight alongside other sectors. It is to be able to show it on Netflix, not anywhere else. If season 2 comes out, the performance of season 1 is also calculated and compensated. IP (Intellectual Property Rights) continue to benefit from being used. It is to create a good ecosystem environment,” he said, pointing out the circulation structure of Netflix.

As the breadth of the content market widened, young people got used to watching short-form before long movies or dramas, so streaming service companies turned on red flags. When asked if there was a breakthrough unique to Netflix, “Young people don’t just watch short form. When 'Wednesday' and 'Stranger Things' came out, the viewing time was very long. After all, what people want is a good story. Short form can feel momentary pleasure. But people eventually want a more professional story. If it's a good story, I think people will be able to see it, even if it's long."

Kang Dong-han, VP of Korean content at Netflix, also said, "Netflix is also seeing a lot of opportunities in that direction. In the US, we tried with comedy clips. The creators we work with are good at movies and series. Short form is what we do. I have doubts about whether it's right. It's an area I want to do someday, if not right away," he said, emphasizing the direction of Netflix at this point.

Many streaming services are suffering from illegal viewing of content that has recently become a problem. Ted Sarandos, CEO of Netflix, also opened his mouth with a prickly comment along with concerns. He said, “It is dangerous to harm the health of the creative ecosystem. If you watch these rewards illegally, the rewards will be zero. It affects everyone in the industry. We continue to invest and make efforts,” he explained.

Reporter Lee Ha-neul, Ten Asia greenworld@tenasia.co.kr