‘Squid Game’ Season 3 Powers Netflix Lead as Korea’s Premium VOD Market Hits $1.1 Billion, Report Finds

The Korean streaming wars are heating up. New data shows the country’s premium video-on-demand sector reached $1.1 billion in revenue during the first half of 2025, with subscriber numbers climbing to 24.5 million.

Research firm ampd, owned by Media Partners Asia, reports that paid subscriptions grew by 1.5 million during the six-month period. The real game-changer came with the introduction of connected TV tracking in Q2, which revealed viewing habits were significantly underestimated. The new measurement methodology boosted reported monthly active users by roughly 35% per platform and sent total viewing hours soaring to 1.2 billion in the second quarter alone.

Netflix continues to dominate with 8.2 million Korean subscribers and nearly half of all premium streaming viewership. The platform’s success stems from a winning combination: local blockbusters like “Squid Game” Season 3, popular licensed films fresh from theaters, and a strategic partnership with Naver Plus that provides free access to Netflix’s ad-supported tier.

But competition is intensifying. TVING scored the biggest subscriber gains by rolling out budget-friendly ad-supported options alongside strong variety shows, Korean dramas, and live sports coverage. Coupang Play made its own moves with a free advertising tier and new Sports Pass offering.

The industry’s biggest shake-up comes from June’s approval of the TVING-Wavve combination, which will create a merged entity boasting 9.2 million subscribers by year-end – positioned as a serious local alternative to Netflix’s international dominance.

“Korea‘s premium VOD sector is consolidating around a handful of scaled leaders,” said Vivek Couto, executive director of MPA. “Local storytelling remains the foundation of engagement and monetization, while CTV is unlocking new audiences and advertising opportunities. The TVING-Wavve merger will reshape competition, providing a stronger domestic counterweight to Netflix’s scale.”

The viewing data reveals Korea’s fierce loyalty to homegrown entertainment. Local content commanded 86% of all streaming hours in Q2, with Korean dramas alone capturing 48% of total viewership. Variety and reality shows from Korea grabbed another 27%, while Korean films took 10%.

International content struggles for attention, with American movies managing just 6% of viewing time as the largest foreign category. Netflix dominates drama consumption while TVING and Wavve lead in variety programming.

“Korean content’s dominance is near-universal, reaching 88% of all premium VOD users,” said Dhivya T, lead analyst at MPA and ampd. “K-dramas, comedy, and variety shows drive cross-platform reach, while high-profile exclusives on Netflix, TVING, Coupang Play and Disney+ add competitive edge. Advertising tiers are now central to subscriber acquisition, especially in urban and price-sensitive segments.”