The popularity of Korean shows and films such as “Squid Game,” “Minari,” and “Everything Everywhere All At Once” has led to an increase in the demand for Asian language content globally. Streaming services like Netflix, Warner Bros. Discovery’s Max, and Rakuten Viki offer US viewers easier access to global content than ever before, and this has helped boost the demand for such content. Although some media companies have implemented cost-cutting measures to make their streaming apps profitable, investment in Asian content remains high.
Increasing Demand for Asian Language Content
According to data provider Parrot Analytics, the share of global demand for Asian language content reached 25% in the first quarter of 2022, up from about 15% in the same period in 2020. While the supply of Asian content outstripped demand, the gap between the two is narrowing. During the first quarter of 2022, the supply was 4.7% greater than demand, an improvement from 9.8% in the same period of 2020.
Brandon Katz, an entertainment industry strategist at Parrot Analytics, said that although some might think that supply outstripping demand could lead to a slight pullback in investment, the gap is shrinking due to the success of Netflix hits such as “All of Us Are Dead” and “The Glory.” Katz pointed out that there is steady progress being made, which was reflected in 2022. Since the beginning of the year, titles such as “Squid Game,” “Extraordinary Attorney Woo,” and “All of Us Are Dead” have continuously claimed four spots on Netflix’s global top 10 non-English TV hits. “Squid Game” even took the first spot for a period.
Investment in Korean Content
Last month, Netflix announced that it would double its total investment in Korean content since 2016, roughly investing $2.5 billion over the next four years to produce more Korean shows and movies. The company’s decision to invest comes after 60% of all Netflix members watched at least one Korean title in 2022. Don Kang, Netflix’s vice president of Korean content, told CNBC’s “Squawk Box Asia” that the company’s primary focus is on the local audience in Korea. Kang stated that when a show is loved by the Korean audience, it has a high likelihood of being loved by audiences or members worldwide.
Streaming Services’ Response to the Shift in Demand
Rakuten Viki, a streaming service owned by Japanese ecommerce giant Rakuten, has also seen a surge in growth in recent years across various Asian language content. The company’s registered user base grew by 27% globally in 2022, leading the streamer to increase its investment in content by 17% that year. Although Korean content remains the majority of what is consumed on the service, viewership for Japanese, Chinese, and Thai-language shows has increased.
Karen Paek, vice president of marketing at Rakuten Viki, said that the company has seen a growing interest and passion for its shows around the world. The streamer’s user base is so passionate that volunteers around the world generate subtitles for much of its content. Although its content is mainly produced and created in Asian countries, the service licenses hits like “The Farewell” for its US audience.
Other streaming services are following a similar approach. Max has said that it will increase and highlight Asian content during AAPI month. Paek noted that the service’s audience is open to watching Chinese, Japanese dramas, and the “Thai boy love genre,” which has been a big hit for the service.
The increase in the popularity of Korean shows and films has led to a surge in demand for Asian language content globally. Streaming services like Netflix, Warner Bros. Discovery’s Max, and Rakuten Viki have responded to the shift in demand by investing in such content. Although the supply of Asian content outstripped demand, the gap between the two is narrowing, and the investment in Asian content remains high.
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