Rising Status of K-Drama... Now It's Time to Reap Real Benefits

The IP of the first major hit drama 'Good Doctor' in the US belongs to the production company... Opposite case for OTT
Biggest beneficiaries of new conditions for Korean dramas due to hits like 'Ojingeo Game' and 'Jiok'
Transitional issues like subcontractor controversies "New conditions should be added considering follow-up seasons"

The American version of 'Good Doctor' has the highest ratings among new ABC dramas aired in the past 13 years. ABC announced on the 30th of last month that they will also produce Season 6.

The first Korean drama to enter the U.S. market was Good Doctor. It has been remade since 2017. Currently, ABC is airing season 5, with season 6 already announced. The response has been very enthusiastic. The premiere was watched by about 20 million households. Season 5 also recorded up to 8 million households. In the U.S., a viewership of over 5 million households is considered a "hit."

The journey to success was not smooth. The shopping contract is a representative example. It is a contract that grants the production company the right to develop a drama proposal and find a studio to produce it. If successful, the production company becomes the executive producer. At this stage, the copyright holder traditionally does not receive payment. Domestic broadcasters receive a Minimum Guarantee when selling content or signing remake contracts. KBS was very concerned about shopping contracts without a Minimum Guarantee due to a lack of understanding of the new environment. It was necessary to explain the U.S. practices and persuade them of the potential for new remakes.

Lee Dong-hoon, CEO of Entermedia Content, did not stop challenging despite numerous difficulties. He was confident that the story of a genius doctor with autism overcoming prejudice would resonate. "In the 1970s and 1980s, warm dramas like Little House on the Prairie and Angel Jonathan were popular in the U.S. They rapidly disappeared in the 2010s, so I thought an opportunity would come."

He met with broadcasting officials more than 100 times. Most did not even check the Korean version because they were not used to subtitles. With the help of the Korea Creative Content Agency, he got a chance to write a pilot script, but getting it filmed was like a camel passing through the eye of a needle. Lee said, "Out of 400 to 500 projects, only 5 to 10 get pilot production opportunities. Even if a famous writer is attached, automatic scheduling does not happen."

ABC drama 'Good Doctor' still cut

He was able to accelerate the remake by bringing in David Shore, the writer of House. In the 2016 pitching (investment attraction) process, ABC offered the best conditions. They reviewed the pilot script and granted production opportunities.

In the U.S., production does not directly lead to scheduling. Every May, the pilot must be tested for marketability in front of advertisers. Even after airing, if ratings are low, the show is canceled early. Three Rivers, starring Daniel Henney, was such a case. CBS aired only 8 out of 13 episodes. It was fully aired on domestic cable broadcasters because the production company sold the broadcasting rights at the International Screening held every May. The drama IP rights of major U.S. broadcasters belong to the production company. For OTT dramas, it is the opposite. Since subscribers must be able to watch anytime, they are produced as OTT originals.

Korean dramas are the biggest beneficiaries of new conditions. They have rapidly risen due to global hits like Squid Game, Hellbound, and All of Us Are Dead. Lee said, "Now, 90% of North American content industry workers check Korean dramas with subtitles," adding, "They even show interest in works with over 80% Korean language." Popularity is also sensed domestically. Netflix will release twenty-five Korean titles this year, ten more than last year's fifteen. Kang Dong-han, Netflix Vice President, said, "Korean content is that important to us," and "Our internal evaluation and status greatly improved last year."

Netflix 'Hellbound' Still Cut

Netflix pays a fixed amount to production companies and exclusively owns all future IP-related revenues through a buyout contract. Even if the project fails, the production company does not bear the loss. Instead, they are guaranteed cost recovery and 5-10% profit sharing. There are no separate incentives or remake revenues based on success. This has raised concerns that production companies may become subcontractors. There are calls for sufficient compensation at least for highly successful works.

Lee diagnosed, "This is a transitional period where new standards are being created," adding, "There are almost no content-specialized lawyers in Korea, so farces keep happening." He advised, "There is no need to be obsessed with IP."

"It is necessary to consider contracts that include follow-up seasons. For example, attaching conditions such as bonuses for entering the global top 10 viewership rankings or requesting separate production costs for follow-up seasons makes things easier. Interest in Korean dramas is increasing, and with the expected entry of HBO Max, Paramount Plus, and others into Korea, quick arrangements are needed. Looking ahead and creating various connections will protect the next generation of creators and producers."

This content was produced with the assistance of AI translation services.