First Korean Drama to Make Netflix’s Top 10 Most-watched Lists
The author is an analyst of KB Securities. He can be reached at drlee@kbfg.com. -- Ed.
Sweet Home tops Netflix rankings in Korea, also charts globally
— Sweet Home, a Netflix original drama produced by Studio Dragon, has reached Netflix’s top 10 most-watched lists in major markets since premiering on Dec 18. Of note, it has been one of the most-anticipated shows for 4Q20 with production costs at KRW30bn (KRW3bn per episode).
— In Korea, Studio Dragon has been solidifying its position with Netflix, with Sweet Home topping the domestic charts—following the success of The Uncanny Counter, another Studio Dragon-produced show.
— Of note, Sweet Home is the first Korean show to garner a spot on the most-watched list in the U.S. (i.e., currently ranked 5th), and the show has ranked first in 13 countries.
— Sweet Home’s success is significant in that the show has ranked within the top-10 lists in the U.S., Europe, and Asia. The popularity of successful Korean shows has previously been limited to some Asian markets (based on Netflix rankings).
Environment favorable for content demand
— Netflix remains the leading player in the domestic OTT market, and Disney+ is scheduled to launch services in Korea next year. As the content lineup is the critical factor in the success of OTT platforms, content should become increasingly valuable.
— Given its successful content production track record, Studio Dragon should appeal to OTT platforms as part of their efforts to take the lead in Korea and global markets.
— As competition in the OTT market ramps up, the competitiveness of content providers (CP) should gain traction. Studio Dragon is advantageously positioned in Korea as only a small number of domestic CPs have experience securing global success with high-budget content.
Tie-up with Naver—a move in the right direction
— On Nov 11, Studio Dragon announced a share swap with Naver through a third-party allotment as part of efforts to secure IP and expand premium content production.
— Sweet Home is based on the eponymous webtoon on Naver. The success of the show should catalyze the production of more webtoon IP-based content. Webtoon IP-based content is likely to generate a high hit ratio as only webtoons that have already proven successful are recreated into other formats.
— Naver has been expanding investments in the global market—growing rapidly in the webtoon market, with 67mn monthly active users (MAU). The global popularity of its webtoon should also bolster the success of webtoon IP-based TV shows.