Korean Netflix users’ preference for Korean content falls sharply: report

South Korean users are showing significantly less interest in domestic content.

According to a report by the Korea Creative Content Agency, Korean Netflix users’ preference for domestic content on Netflix stood at 58.58 percent in the third quarter of this year, down 10.33 percentage points from the second quarter.

Preference for Korean-produced content excluding Netflix originals also fell sharply, dropping from 52.06 percent in the second quarter to 37.67 percent in the third quarter — a decline of over 14 percentage points.

Overall preference among Korean Netflix users for Asian content also trended downward, slipping from 77.9 percent in the second quarter to 70.51 percent in the third quarter.

The KOCCA report, "Broadcasting, Video and OTT Trends," evaluated content preference by calculating the proportion of total popularity points earned by each category among titles entering regional top 10 lists during the evaluation window.

Popularity points were assigned using platform top 10 rankings: awarding 10 points to the No. 1 title, nine points to No. 2, down to one point for No. 10. Third quarter analysis spanned July 1 to Sept. 17.

The report also examined international trends, unveiling that domestic content preference on Netflix was highest in the United States at 82.46 percent. Japan followed at 72.89 percent, with India at 63.37 percent and Korea at 58.58 percent. Meanwhile, Mexico and South Africa — both of which recorded sub-10 percent shares for domestic content in the second quarter — surpassed the 10 percent threshold in the third quarter.

According to KOCCA, a key development highlighted by the report was the rapid growth of Japanese content.

"The most notable development is the rapid growth of Japan’s local content. Data from the third quarter shows that Japan’s local content market, which has traditionally been centered on animation, is expanding with the growth of live-action dramas," KOCCA stated in the report.

Meanwhile, the agency pointed to a contrasting trend in Korea.

"In contrast, the share of preference for Korean local content has continued to decline, while the supply of new local content from traditional broadcasters has also decreased significantly in volume. A close analysis of the market appears necessary," the agency added.