Netflix CEO expands investment by 3 trillion in Korea... "Please look forward to it" for account sharing fee and network usage fee

Netflix co-CEO Ted Sarandos talked about account sharing pricing and revenue sharing.

On the morning of the 22nd, a discussion on Netflix and Korean content was held at Four Seasons Hotel Seoul, Jongno-gu, Seoul. The event was attended by content executives, including Ted Sarandos, co-CEO of Netflix.

Co-CEO Ted Sarandos said on the day, "We launched Netflix globally in 2016, but we didn't expect it. People would rather follow the typical Hollywood formula of exporting content overseas. But we chose a different path." . He added, "We have invested in more than 50 countries. Some are to entertain local audiences, but we believe that great stories can come from anywhere. There is no place that has properly proven that belief."

Ted Sarandos said, "60% of global viewers have watched at least one K-content. The movie 'Carter', the series 'Our School Now', and 'The Glory' have been ranked in the TOP 10 in more than 90 countries. It's not easy to look at the works, or to beat the historical 'Squid Game' by any indicators. Works such as 'The Glory', 'Strange Lawyer Woo Young-woo', 'Physical: 100', and 'Gil Bok-soon' have created a huge fandom." Explained.

Netflix recognized the potential of Korean content. Ted Sarandos pointed out, "We plan to invest 2.5 billion dollars (about 3.2248 trillion won) over four years. Of course, training the next generation of creators is also included." He said about the characteristics and strengths of Korean contents, "It is a country with great storytelling power. Korean storytelling seems to reflect history to some extent. What is interesting is that fashion, music, food, etc. go together." Explained.

Ted Sarandos said, “I think that various elements are buried in a beautiful story. It is also a strength that there is no set formula. The autonomy to tell a great story is guaranteed. Yes. My wife is also a fan of 'The Strange Lawyer Woo Young-woo'. After watching that drama, she fell in love and fell in love with another drama in a new genre. I think personality is what brings excitement."

Kim Ji-yeon, CEO of Firstman Studio, the production company that produced 'Squid Game', said, "There are definitely works that will satisfy the global market with local works. The existence of a platform that can go to the global market (like Netflix) is a source of strength for the producer. There is a part. I hope you pay a lot of attention to work selection, marketing, and distribution."

Representative Kim Ji-yeon said, "Because it is pre-produced, compensation for success can be stably made to some extent, but there are parts that become issues. Good relationships with producers and creators, appropriate compensation, and appropriate investment, etc. will be formed." I believe. 'Squid Game' is also working on season 2 with a good personality based on the success of season 1. I think it's encouraging. I sincerely hope that many Korean contents like 'Squid Game' will come out."

Byun Seung-min, CEO of Climax Studio, the producers of 'DP', 'Hell' and 'Jung-i', said, "The most common question I heard while working with Netflix is profit distribution. Since there are set rules, if there are any concerns about creating the conditions for continued box office success, It made me think a lot,” he confessed. He continued, "When producing a drama, I think that PPL or creators create PPL so that viewers do not feel uncomfortable when it comes to profit. I hope there are realistic rules for profit distribution so that it becomes a sustainable creation system."

Since 2020, Netflix has been in a court battle with SK Broadband, an internet service provider (ISP), regarding the burden of network usage fees. Ted Sarandos said, "There are creative companies and Internet companies, and I think we should collaborate to show the best projects possible." Ted Sarandos said, "We're trying to create a good ecosystem. We've invested about $1 billion (about 1.29 trillion won) in Open Connect. We're trying to facilitate it. More than 6,000 points have the Internet. I invested to make it faster. I plan to continue investing again."

What global viewers are most curious about is the Netflix account sharing fee-for-service. When asked when the new account sharing method will be applied in Korea, Ted Sarandos said, "As for the account sharing method, it will continue globally. There is nothing to announce about this. Please look forward to it."

Reporter Kang Min-kyung, Ten Asia kkk39@tenasia.co.kr