Squid Game’ Season 3 Drives Netflix’s Dominance as Korea’s Premium VOD Market Surges to $1.1 Billion
Korea’s premium VOD market hits $1.1B in 2025 as Netflix dominates with 8.2M subscribers, fueled by ‘Squid Game’ Season 3 and strong local content demand.
Korean Streaming Market Surges to $1.1 Billion in Early 2025
The Korean streaming wars are intensifying, with the country’s premium video-on-demand (VOD) market generating $1.1 billion in revenue during the first half of 2025. Subscriber numbers also hit a new milestone, climbing to 24.5 million users.
According to Media Partners Asia’s research arm ampd, paid subscriptions grew by 1.5 million within just six months. A major turning point came in Q2 with the rollout of connected TV tracking, which exposed how much previous reports underestimated audience behavior.
This new measurement method boosted monthly active user counts by nearly 35% per platform and revealed explosive engagement levels—total viewing hours surged to 1.2 billion in Q2 alone.
With competition between platforms heating up, these insights highlight how connected TV adoption is reshaping Korea’s digital entertainment landscape.
Netflix Leads Korea’s Streaming Market With 8.2 Million Subscribers
Netflix remains the undisputed leader in Korea’s competitive streaming landscape, boasting 8.2 million subscribers and capturing nearly 50% of total premium video-on-demand (VOD) viewership.
The platform’s dominance is fueled by a powerful mix of content and strategy: blockbuster Korean originals such as “Squid Game” Season 3, exclusive access to popular licensed films straight from theaters, and a strategic partnership with Naver Plus. This collaboration gives users free access to Netflix’s ad-supported tier, expanding its reach to a broader audience.
By blending local hits, global franchises, and smart distribution deals, Netflix continues to strengthen its market share and maintain a commanding position in Korea’s fast-growing streaming industry.
Korea’s Streaming Battle Heats Up as TVING and Wavve Merge to Challenge Netflix
The streaming competition in Korea is becoming more intense. TVING recorded the strongest subscriber growth, thanks to its affordable ad-supported plans, combined with a lineup of hit variety shows, popular K-dramas, and live sports coverage.
Meanwhile, Coupang Play is expanding its footprint with a free ad-supported tier and the launch of a Sports Pass, appealing to fans eager for affordable entertainment.
The industry’s most significant shift came in June 2025, with the approval of the TVING–Wavve merger. This newly formed entity is projected to reach 9.2 million subscribers by year’s end, positioning it as the leading local challenger to Netflix’s international dominance in Korea’s booming premium streaming market.
Korean Streaming Market: Local Content Dominates as TVING–Wavve Merger Reshapes Competition
According to Vivek Couto, Executive Director at Media Partners Asia (MPA), “Korea’s premium VOD market is consolidating around a few major players. Local storytelling remains the backbone of engagement and monetization, while connected TV (CTV) is opening new audiences and ad opportunities. The TVING–Wavve merger will redefine competition, creating a stronger domestic rival to Netflix’s scale.”
Fresh data confirms Korea’s strong preference for homegrown entertainment. In Q2 2025, local content made up 86% of total streaming hours:
- Korean dramas captured 48% of viewing time.
- Variety and reality shows accounted for 27%.
- Korean films took another 10%.
By contrast, international content struggled to gain traction, with U.S. films making up just 6%, the largest foreign category.
Platform dynamics show Netflix still leads in K-drama viewership, while TVING and Wavve dominate variety programming.
As Dhivya T, lead analyst at MPA and ampd, explains: “Korean content’s dominance is nearly universal, reaching 88% of all premium VOD users. K-dramas, comedy, and variety shows fuel cross-platform growth, while high-profile exclusives on Netflix, TVING, Coupang Play, and Disney+ add competitive differentiation. Ad-supported tiers are now critical to subscriber acquisition, particularly among urban and price-sensitive audiences.”