Netflix CEO Ted Sarandos says the streaming giant saved Hollywood by offering new ways to watch films. His comments have raised concerns about whether Netflix’s growing influence could reshape South Korea’s thriving film industry.
Netflix’s Claim to Save Hollywood
In a recent TIME magazine interview, Ted Sarandos responded to claims that Netflix harmed Hollywood. He stated firmly that Netflix did not destroy the industry but instead revitalized it.
He explained that Netflix provides content in ways viewers prefer, especially for those in rural areas with limited theater access. Sarandos highlighted Netflix’s purchase of a single-screen cinema in Manhattan in 2019 as proof of supporting traditional cinema. He acknowledged that theater-only releases may be outdated for many but not all viewers.
This bold statement has stirred debate globally. Many wonder if Netflix’s model, which prioritizes streaming, could overshadow traditional filmmaking, including in South Korea.
Netflix’s Growing Role in Korean Entertainment
South Korea’s film industry is a global powerhouse, known for films like Parasite and Squid Game. Netflix has played a major role in sharing Korean content worldwide. Since entering Korea in 2016, Netflix has invested heavily in local productions. In 2023, it pledged $2.5 billion over four years to produce Korean dramas, films, and shows, doubling its investment since 2016.
Popular Netflix originals like Squid Game, The Glory, and Physical: 100 have become global hits. Squid Game remains Netflix’s most-watched series, with 1.65 billion hours viewed in its first 28 days. These successes have boosted Korean culture, with 72% of K-content viewers wanting to visit Korea, compared to 37% of non-viewers.
Netflix’s investment goes beyond production. It supports local companies in special effects, makeup, and post-production. A 2021 Deloitte report credited Netflix with creating 16,000 jobs and adding KRW5.6 trillion to Korea’s economy.
Benefits for Korean Creators
Korean producers and actors benefit from Netflix’s resources. The platform offers stable budgets for big projects like Narco-Saints (35 billion won) and Black Knight (25 billion won). Global streaming increases visibility, helping actors gain international followers quickly.
“When their work gets released on Netflix, actors experience the almost-instantaneous response of gaining social media followers from across the world,” a film director noted.
Netflix also collaborates with local firms like Studio Dragon and SBS, fostering innovation. Its 2025 slate includes 29 Korean titles, such as Squid Game 3 and the animated film Lost in Starlight, starring Kim Tae-ri and Hong Kyung.
Concerns Over Netflix’s Influence
Despite the benefits, many in Korea worry about Netflix’s growing control. Local filmmakers fear losing creative freedom and intellectual property rights. Selling rights to Netflix often limits producers’ ability to profit from merchandise or future projects.
“If Netflix continues to remain preoccupied with producing original programming for which it possesses intellectual property rights, the Korean creative industry may end up becoming a supplier for a single platform,” said film critic Kim Do-hoon.
The Korean film industry faces challenges. Box office revenue in 2023 was KRW1.261 billion, down 44% from 2019’s peak. Korean films’ market share dropped to 48%. Streaming platforms like Netflix are blamed for reducing theater attendance, as viewers wait for films to stream.
“Cinema is not protected from Netflix. If audiences think they can see the film a few weeks later on Netflix, they won’t watch our films in theaters,” said Kim Won-kuk, producer of 12.12: The Day.
Director Jang Joon-hwan, known for Save the Green Planet, called this a “precarious period” for Korean cinema. He noted that streaming platforms rush films online, hurting ticket sales.
Impact on Local Production
Netflix’s dominance affects local production companies. While it produced 28 Korean originals in 2023, the number is small compared to the 160 dramas made yearly in Korea. Domestic platforms like TVING and Wavve have cut investments due to low profits, leaving producers reliant on Netflix.
This reliance creates a cycle. Producers flock to Netflix for funding, but the platform’s control over rights limits their independence. Some compare Korean producers to subcontractors for global streamers.
“As the case of Avengers shows, [Disney] do this and do that with the same intellectual property,” a Korean industry participant said, highlighting concerns about losing control.
Labor issues also persist. Korean writers and crews face long hours and low pay, even with Netflix’s involvement. Assistant writers earn near minimum wage, and the industry relies on passion to sustain low budgets.
Netflix’s Response and Future Plans
Netflix defends its role, saying its investments create jobs and train talent. Ted Sarandos emphasized supporting Korean creators through training programs with Kocca and Kofic. The company claims its model benefits both Netflix and Korea’s industry.
“Our investments have created employment for thousands of people locally, and our training programs help develop the next generation of Korean talent,” Netflix stated.
In 2025, Netflix plans to release 21 scripted series, 8 unscripted shows, and 8 original films from Korea. Titles include Mantis, a spinoff of Kill Boksoon, and Culinary Class Wars, which topped global non-English charts.
Balancing Global Reach and Local Identity
South Korea’s film industry must balance Netflix’s opportunities with preserving its identity. The success of Parasite and Squid Game shows Korea’s storytelling strength. However, over-reliance on Netflix risks turning local creators into content suppliers.
Some hope for government support. Proposals include protecting theaters from streaming competition. Others, like Jang Joon-hwan, encourage low-budget, independent films to maintain diversity.
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Recent updates show Netflix’s commitment to Korea remains strong. Its partnership with SBS and training initiatives aim to nurture talent. Meanwhile, local producers continue to navigate the challenges of a streaming-driven market, striving to keep Korean cinema vibrant.
CREDITS: Daum, Netflix
