Abstract

As the OTT services rapidly grow, the influence of OTT on the overall media market is increasing. This report aims to examine the current status and challenges of the video media market, focusing on both broadcasters and subscription-based OTT operators.
While the revenue, usage rates, and user numbers of subscription-based OTT services have been rapidly increasing, many domestic OTT operators are experiencing operating loss due to content cost burdens. On the other hand, Netflix’s demand for korean content remains high, indicating that Netflix’s influence seems to be strengthening in the domestic market.
While the number of pay-tv subscribers and revenue continues to rise, pay-tv platforms are losing their growth edge due to market saturation and increased competition from OTT.
Although pay-tv platforms are becoming an oligopoly, the impact of oligopoy is primarily observed in the home shopping channel trade market rather than the pay-tv market. For channel operators, the TV advertising market, which was traditionally the main revenue source, is stagnating. Meanwhile, opportunities
for distributing programs, such as through OTT and international markets, are expanding, leading to a shift in revenue structure.
Consequently, ownership of intellectual property (IP) for programs becomes increasingly important.
From a policy standpoint, the government needs to adopt an approach that focuses on protecting "competition" rather than specific "operators" and ensuring the sustainability of the industry. Netflix’s strengthening influence could pose a long-term threat to the domestic ecosystem. However, careful
consideration is necessary, as introducing regulations related to copyright and additional compensation may impose a greater burden on domestic operators competing with global entities.
Instead of excessive investment support policies, the government should prioritize support for the overall reproduction system, including production personnel and infrastructure, to ensure the industry's stable sustainability. Additionally, establishing policy measures to support the overseas distribution of domestic
operators seems necessary to protect platform competition.