On the 27th, the Korea Communications Commission announced the results of its 2024 overseas online video service (OTT) 'market research' and 'usage behavior survey.' The overseas OTT survey has been conducted separately as market research and usage behavior research since 2022, and it is used as basic data to establish successful overseas expansion strategies for domestic OTT platform operators.
Saudi Arabia is a young country where nearly 60% of the population is under 40 years old, with an internet usage rate reaching 100% and a high purchasing power, promising continuous growth in the OTT market. However, obtaining licenses from the 'General Authority for Media Regulation (GAMR)' and the 'Communications Space Technology Committee (CTS)' is essential for OTT services, and content regulation due to conservative culture and strict religious rules appears to be stringent.
Turkey is experiencing a rise in the burden of OTT subscription fees due to the recent unstable economic situation characterized by rising prices and currency depreciation, and its internet speed has been found to be lower than the global average. In Turkey, obtaining permission from the 'Radio and Television Supreme Council (RTÜK)' and having a legal representative in Turkey are also required for OTT services. Meanwhile, while there are content regulations such as those regarding religion and criticism of the state for local content production, it has been confirmed that there is a support system that refunds up to 30% of production costs.
Spain has developed significantly different regional languages, making high-quality dubbing in the common Spanish language essential. Furthermore, it is required that over 30% of the total content on OTT platforms be comprised of European content, with at least 15% being in Spanish, indicating that the regulatory standards are stringent. However, there is a trend of expanding OTT consumption, particularly among the open-minded younger generation.
Portugal has been found to have a market share of over 93% for global OTT platforms, with users preferring foreign content over domestic content. There are no regulations on OTT services, but strict compliance with data protection laws is required, and like Spain, more than 30% of the total content must be comprised of European content. However, it has been revealed that strategic pricing systems aimed at attracting users to subscription-based services (SVOD) starting from low-cost advertising-based services (AVOD) will be effective, due to a lower income level compared to the European average.
In Saudi Arabia, the average person uses 3.4 OTT platforms, with the local OTT platform Shahid showing a usage rate of 68.1%, ranking second after Netflix (78.3%). With a high viewing rate of 60.9% for family watching and a willingness to use K-OTT at 70.1%, it appears that a K-OTT content strategy focused on family themes reflecting Islamic cultural and religious characteristics will be effective.
The market research selected target countries to explore the feasibility of international expansion through prior coordination with domestic OTT operators. It analyzed the OTT market size and outlook for each country, the current state of related legal regulations, and the level of infrastructure. The usage behavior survey selected countries that are likely for domestic OTT operators to enter, investigating local user characteristics such as media device usage, frequency of K-content usage, subscription plans, and preferences for K-OTT platforms.
Park Dong-joo, director of the Broadcasting Infrastructure Bureau at the Korea Communications Commission, noted that 'this survey provides detailed analysis and key implications regarding overseas markets, such as Saudi Arabia, which domestic OTT operators have previously found difficult to access,' and stated, 'This will serve as important basic data for domestic OTT operators considering overseas expansion in countries across Asia, Europe, and the Middle East to understand the market conditions and usage behavior of each country.'