The Korea Communications Commission (KCC) has announced the results of a survey on the overseas online video service (OTT) market and usage behaviors on the 27th. This data aims to assist domestic OTT companies in formulating strategies for international expansion.
This year’s survey focused on global and local OTT operators, legal frameworks, and related industry experts in Saudi Arabia, Turkey, Spain, and Portugal. Expert in-depth interviews were conducted using local field researchers.
Saudi Arabia, a young country with nearly 60% of its population under 40, has a 100% internet usage rate and high purchasing power, suggesting continued growth in the OTT market. However, obtaining a license from the General Authority for Media Regulation (GAMR) and the Communication and Information Technology Commission (CTC) is mandatory, and content regulations are strict due to conservative cultural and religious norms.
In Turkey, economic instability has led to increased OTT subscription costs, and internet speeds are below the global average. OTT services require approval from the Radio and Television Supreme Council (RTÜK) and a legal representative in Turkey. While there are content regulations related to religion and national criticism, there is also a rebate system for up to 30% of production costs for local content creation.
In Spain, the country’s diverse regional languages mean high-quality dubbing in common Spanish is essential. Regulations mandate that over 30% of OTT platform content must be European, with at least 15% in Spanish. Despite these strict standards, OTT consumption is growing among the open-minded younger generation.
Portugal’s study showed global OTT platforms hold over 93% market share, with users preferring international content over local productions. While there are no OTT service regulations, strict privacy laws must be adhered to, and over 30% of content must be European, similar to Spain. Due to lower income levels compared to the European average, a strategic pricing model shifting from ad-based to subscription-based services would be effective.
The user behavior survey involved over 1,600 participants from Saudi Arabia, Thailand, Malaysia, and Australia, employing a demographic sampling method that proportionally represents the characteristics of OTT users.
In Saudi Arabia, the average person uses 3.4 OTT platforms, with local provider Shahid having a 68.1% usage rate, second to Netflix at 78.3%. Content suitable for family viewing is popular, with 60.9% watching with family and 70.1% showing interest in Korean OTT (K-OTT) content.
In Thailand, users average 4.4 OTT platforms, with Netflix (88.0%) and TrueID (60.5%) leading. Smartphones are the primary device for viewing (54.3%), and there is a high demand (83.1%) for K-OTT content, with importance placed on translation quality when watching foreign content (90.7%).
Malaysian users access an average of 4.2 OTT platforms, with Netflix (79.5%), iQIYI (39.7%), and Astro Go (37.7%) most used. K-content usage is at 72.5%, and the intention to use K-OTT is at 61.9%, with K-content outperforming local content in story, originality, and acting. Both subscription-based (69.3%) and ad-supported (68.2%) models are popular.
In Australia, the average usage is 4.6 OTT platforms, with Netflix (78.3%), Disney Plus (48.0%), and Prime Video (46.6%) leading. Users have a strong preference for local (92.9%) and American (71.6%) content, with low K-content consumption (16.6%). Unlike other countries, TV is the predominant viewing device (47.3%).
Park Dong-joo, Director of Broadcasting Infrastructure at the KCC, stated that the survey provides detailed analyses and insights into difficult-to-access overseas markets like Saudi Arabia, serving as a critical foundational resource for domestic OTT companies considering international expansion in Asia, Europe, and the Middle East.