[Initial Insight] The Rise of TVING and the Cracks in Netflix's Dominance

Monthly User Gap Hits Record Low
Differentiation Through Sports Content Effective
OTT Competition Expands into Various Fields

"In a market of infinite competition, there is no eternal champion."

Until now, Netflix has reigned as the absolute leader in the domestic online video service (OTT) market, but recently, with the rising presence of TVING, the market landscape has begun to shift. According to Mobile Index's August survey, TVING's monthly active users (MAU) reached 7.83 million. Although there is still a gap compared to Netflix's 11.21 million, the difference between the two platforms has narrowed to the lowest level ever. Notably, while the overall OTT market is stagnating or declining in user numbers, TVING alone has shown steady growth. During the same period, Coupang Play recorded 6.85 million MAU, Wavve 4.41 million, and Disney Plus (Disney+) 2.85 million.

Kwangho Lee, Head of the Industrial IT Division Corporate Team

TVING's growth is putting considerable pressure on existing competitors. This year, TVING was the only platform to show a remarkable upward trend in the OTT market. This is because TVING has strengthened its position in the domestic market through a unique content strategy and differentiated services. One of TVING's growth factors is its strategy utilizing sports content. While the OTT market as a whole entered a stagnation phase, TVING pioneered a new path through sports. Domestic consumers consistently have high demand not only for entertainment, dramas, and movies but also for live sports broadcasts. TVING effectively targeted this demand, securing a fan base, and this strategy succeeded in attracting users by expanding beyond existing content into new genres and fields.

On the other hand, Netflix has maintained its overwhelming position through various hit works over the past few years, but its influence has somewhat weakened recently. Since the success of works like "The Glory," Netflix has failed to release blockbuster titles consecutively, resulting in a decrease of about 1.8 million MAU over the past year. This signals cracks forming in Netflix's monopoly market. Disney Plus is also struggling in the Korean market, having failed to release notable hit titles since "Moving." This shows that global OTT companies are finding it increasingly difficult to dominate the domestic market based solely on brand power.

However, it is still uncertain whether TVING can surpass Netflix and take the top spot in the long term. Netflix still possesses a vast content library and strong brand power. Moreover, as the OTT market itself is rapidly evolving, domestic OTT platforms including TVING need continuous innovation and differentiated content development.

The future of the OTT market is likely to expand beyond just video content to various fields such as sports, music, and live events. In this process, interest will grow in what innovative strategies domestic OTT platforms like TVING will implement and how global competitors like Netflix and Disney Plus will respond. Ultimately, success in the OTT market depends on diversity, originality, and user-centered content strategies. TVING's growth trend proves this, and the competition for leadership in the domestic OTT market is expected to become even more exciting.