Korea Communications Commission releases overseas OTT survey results

KCC Releases 2024 Overseas OTT Market And Usage Behavior Survey Results

The Korea Communications Commission (KCC, Acting Chairperson Kim Tae-kyu) released the results of the 2024 Overseas Online Video Services (OTT) Market Survey and Usage Behavior Survey on Friday, December 27.

The overseas OTT survey has been conducted in two categories since 2022: the market survey and the usage behavior survey. The results have served as basic data for domestic OTT platform operators to establish successful strategies for their overseas expansion.

For the market survey, countries to survey were selected through prior coordination with domestic OTT operators to explore the feasibility of overseas expansion. As part of the survey, various industry trends by country were analyzed, including the size and outlook of OTT markets, current state of relevant legal regulations, and infrastructure levels. In the usage behavior survey, countries where domestic OTT operators are likely to expand were selected. As part of the survey, local user characteristics were examined, including the frequency of using media devices and K-content, price plans, and users’ willingness and preferences for using K-OTT platforms.

The primary findings from this year’s survey results are as follows:

Key Results of the 2024 Overseas OTT Market Survey

The 2024 overseas OTT market survey was carried out, using in-depth expert interviews with local professionals, including global and local OTT operators, legal experts, and relevant industry professionals from Saudi Arabia, Turkey, Spain, and Portugal.

Saudi Arabia is a young country with a population under 40 years old accounting for approximately 60% of its total population. The OTT market is expected to continue growing in this country, considering a 100% internet usage rate and high purchasing power. However, it is mandatory to obtain licenses from the General Authority of Media Regulation (GAMR) and the Communications, Space & Technology Commission (CTS) in order to provide OTT services in this country. Furthermore, regulations on content are rigorous due to its conservative culture and strict religious disciplines.

In Turkey, OTT subscrption fees have been burdening consumers due to the recent fluctuating economic situation, including rising prices and currency depreciation. Moreover, internet speeds are lower than the global average. It is necessary to obtain approval from the Radio and Television Supreme Council (RTÜK) and designate a legal representative within the country to provide OTT services, too. There are regulations on content related to religion and criticism to the government when producing local content whereas a support system is available for reimbursement of up to 30% of production costs.

In Spain, dubbing of quality in the official Spanish language is essential due to the highly distinct regional languages. Furthermore, regulatory requirements are demanding, as 30% or more of the total content on OTT platforms must comprise of European content, with 15% or more of that content in Spanish. Meanwhile, OTT consumption is becoming increasingly popular, particularly among the open-minded younger generation.

In Portugal, global OTT platforms make up for 93% or more of the market share, and users prefer foreign content over local content. While there are no regulations for OTT services, it is required to observe the Personal Information Protection Act. Also, 30% or more of the platform’s total content must consist of European content, as is the case in Spain. On the other hand, it is expected to be effective to design a strategic pricing system that starts with low-cost advertisement-based services (AVOD)* and encourage users to adopt subscrption-based services (SVOD)**, considering the lower income levels compared to the European average.
* AVOD (Advertising Video on Demand): Advertisement-based service
** SVOD (Subscrption Video on Demand): Subscrption-based service

Key Results of the 2024 Overseas OTT Usage Behavior Survey

In the 2024 Overseas OTT Usage Behavior Survey, 1,600 or more respondents from each of four countries – Saudi Arabia, Thailand, Malaysia, and Australia – took part in the survey. The respondents were sampled, using demographic surveying techniques, with the distribution based on gender and age to reflect the characteristics of OTT users in each country.
• Saudi Arabia: 1,600 respondents, Thailand: 1,700 respondents, Malaysia: 1,600 respondents, Australia: 1,604 respondents, Total: 6,504 respondents

In Saudi Arabia, a user subscribes to 3.4 OTT platforms on average, with the local OTT platform Shahid* accounting for a 68.1% usage rate, ranking second after Netflix (78.3%). The percentage of users watching with family is 60.9% and the willingness to use K-OTT services reaches 70.1%. This shows that a K-OTT content strategy would be effective with family-oriented themes reflecting the cultural and religious features of Islam.
* Shahid is an OTT service operated by MBC Group of Saudi Arabia.

In Thailand, users subscribe to 4.4 OTT platforms on average, with Netflix (88.0%) and TrueID* (60.5%) ranking first and second, respectively. The primary device for watching OTT content is smartphones (54.3%), and the willingness to watch and use K-OTT services with major devices is very high at 83.1%. Especially, 90.7% of respondents answered that they give great emphasis to the quality of translation when watching foreign content.
* TrueID is a digital platform provided by Truemove, a leading telecommunications company in Thailand.

In Malaysia, users subscribe to 4.2 OTT platforms on average, with Netflix (79.5%), iQIYI* (39.7%), and Astro Go** (37.7%). The usage rate for K-content is 72.5%, and 61.9% expressed a willingness to use K-OTT services. Among other things, K-content was rated higher than local content in key categories such as storyline, originality, and acting. Users also showed a tendency to use both monthly subscrption-based (69.3%) and advertisement-based free (68.2%) price plans at similar rates.
* iQIYI is a Chinese video platform established with investment from Baidu of China.
** Astro Go is an OTT platform launched by Malaysia’s major broadcaster, Astro, in 2012.

In Australia, users subscribe to 4.6 OTT platforms on average, with Netflix (78.3%), Disney+ (48.0%), and Prime Video (46.6%). In terms of video content, preference for local content (92.9%) and U.S. content (71.6%) is clear, while the usage rate for K-video content (16.6%) is still low. TV ranks first as the medium for watching OTT services at 47.3%, which contrasts with other surveyed countries, where smartphones (25.6%) are the major device for watching.

Park Dong-joo, Director-General of the Broadcasting Infrastructure Bureau at the KCC stated, “These surveys provide crucial implications and a thorough analysis of overseas markets, including Saudi Arabia, a country that domestic OTT operators have previously found difficult to gain insights into. The Director-General said, “They will serve as important basic data for domestic OTT operators considering an entry into overseas markets, assisting them to grasp the market conditions and usage behaviors of each country in Asia, Europe, the Middle East, and beyond.”

The detailed survey results are available in Statistical Reports (OTT) in the KCC’s Mediastat broadcasting statistics portal.