Traditional TV & Home Video - South Korea

In South Korea, revenue in the Traditional TV & Home Video market market is projected to reach US$5.93bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.25%, leading to a projected market volume of US$6.00bn by 2029.
The average revenue per user (ARPU) in South Korea is anticipated to amount to US$147.40.
In a global context, most revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV viewers in South Korea is expected to total 40.4m users by 2029.
User penetration in the Traditional TV & Home Video market market in South Korea is forecasted to be at 77.7% in 2024.
Furthermore, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in South Korea is projected to amount to US$147.40 in 2024.
In South Korea, the traditional TV and home video market is experiencing a notable shift as streaming platforms increasingly dominate consumer viewing preferences.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in South Korea has seen significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in South Korea have shifted towards streaming services and on-demand content, as consumers increasingly prioritize convenience and flexibility in their viewing habits. This has led to a decline in traditional TV viewership and a rise in subscription-based streaming platforms. Additionally, the popularity of smartphones and other mobile devices has contributed to the growth of mobile video consumption in South Korea. Trends in the market show that South Korean consumers are increasingly opting for streaming services over traditional TV and home video options. This can be attributed to the wide variety of content available on streaming platforms, as well as the ability to watch shows and movies on-demand. The convenience of streaming services also allows consumers to watch content on multiple devices, such as smartphones, tablets, and smart TVs. As a result, traditional TV providers in South Korea are facing increasing competition from streaming platforms. Local special circumstances in South Korea have also played a role in the development of the Traditional TV & Home Video market. South Korea has one of the highest internet penetration rates in the world, with a large percentage of the population having access to high-speed internet. This has made it easier for consumers to access streaming services and consume online video content. Additionally, South Korea has a strong technology infrastructure and a culture that embraces new technologies, which has further facilitated the growth of the streaming market. Underlying macroeconomic factors have also contributed to the growth of the Traditional TV & Home Video market in South Korea. The country has a strong economy and a high standard of living, which has led to increased disposable income for many consumers. This has allowed consumers to invest in high-quality home entertainment systems and subscribe to streaming services. Furthermore, the government in South Korea has implemented policies to support the growth of the digital economy, including the development of high-speed internet infrastructure and the promotion of digital content creation. In conclusion, the Traditional TV & Home Video market in South Korea is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards streaming services and on-demand content reflects the desire for convenience and flexibility among South Korean consumers. The strong internet infrastructure and government support for the digital economy have also contributed to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.