Content creators to be differentiated thanks to Netflix data

[Courtesy of Netflix]

KB Securities on Thursday projected that the differentiation in success among domestic content producers would become stark due to Netflix’s data disclosure.

Analyst Choi Yong-hyun highlighted in a report that, according to data released by Netflix for the first half of 2023, Korean content accounted for 5.9 percent in terms of the total content available while the consumption time for Korean content constituted 8.2 percent.

“The estimated proportion of Netflix’s investment in Korean content for 2023 stands at around 5.8 percent. When considering the share of time spent on Netflix, the investment proportion in Korean content appears low,” Choi said.

“While Korean content has demonstrated significant global influence, asserting this influence based on data has been challenging. But with this recent Netflix data release, domestic production companies are now able to quantify the influence of their content through data.”

“This allows confirmation of the contribution of content to the platform,” he explained.

“In the long term, content production companies are expected to leverage content consumption data as a basis for enhancing their content value. Differential treatment is likely to emerge between content creators with a high hit ratio and those with lower success rates. Companies with higher hit ratios are forecast to see increased production scale and profitability,” he added.