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The Fate of Netflix
±èÅÂ¿í °­³²Æ÷½ºÆ® Çлý±âÀÚ | ½ÂÀÎ 2021.06.27 17:59

Netflix is the world's largest online video service (OTT) company, as well as South Korea.

The Covid-19 outbreak has cut off people's steps toward the theater. In fact, according to a recent survey by the Korea Creative Content Agency, the use of screenings and performance halls before the Corona outbreak accounted for 11.7%, but it has decreased significantly to 3.6%. On the other hand, content use at home surged from 51% to 70%.

In addition, according to the Korea Film Council, theater sales fell 73.3 percent to 510 billion units last year from 1.4 trillion won in 2019. This situation continued until the first half of this year. From January to April, the number of viewers was below 3 million per month.

The movie's status fell further as leading film companies such as CGV, Lotte Cinema, and Megabox raised movie tickets, and famous films such as "Time to Hunt,” "The Call,” "Space Sweepers,” and "Night in Paradise" released on Netflix.

Naturally, Netflix benefited from the slump in theaters. According to an audit report by Netflix Services Korea, sales and operating profit reached 415.45 billion won and 8.82 billion won last year. Compared to the previous year's sales of KRW 185.85 billion and operating profit of KRW 2.23 billion, it increased by 123.5% and 295%, respectively. As the size of Netflix's domestic market has grown, various large-scale investments have also been made.

However, the problem has also been revealed. This is because there has been criticism that Netflix avoids taxes despite considerable profits in the Korean OTT market. Eventually, through a tax investigation, the National Tax Service imposed a tax collection of about 80 billion won on Netflix along with hundreds of millions of won in fines.

In addition, Netflix's users have declined for the third consecutive month since January, resulting in an end to the benefits from Corona. I look forward to seeing what Netflix's fate will be.


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±èÅÂ¿í °­³²Æ÷½ºÆ® Çлý±âÀÚ  webmaster@ignnews.kr

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