"Maximum 400 Million KRW Per Episode"
Netflix Sets Cap on Actor Appearance Fees
As the appearance fees for leading Korean actors on Netflix have skyrocketed to between 300 million and 500 million KRW per episode, Japanese actors have also begun demanding higher pay. On September 4, Takayuki Yamada, attending Netflix's 10th anniversary event, called for an increase in appearance fees on behalf of Japanese actors. Takayuki Yamada stated, "I hope the appearance fees for Japanese actors can be raised a bit. Of course, Netflix's guarantees are better than those for other films. However, Japanese actors still have to rely on commercials (CM) for income. We should be able to earn enough through acting, our main profession," he emphasized.
On the 4th, Takayuki Yamada, attending Netflix's 10th anniversary event, demanded a pay raise on behalf of Japanese actors. Netflix
The reason Netflix pays Korean actors significantly more than Japanese actors is because the impact is that much greater. The popularity of Korean content has driven Netflix's performance, making the multi-billion KRW appearance fees seem worthwhile. In the second quarter of this year, Netflix's revenue reached 11.079 billion USD (approximately 15.44 trillion KRW), a 15.9% increase compared to the same period last year, and its operating profit soared by 45% to 3.77 billion USD (about 5.2489 trillion KRW). According to Netflix's "Global Viewing Report for the First Half of This Year," Korean content dominated the top rankings. "Squid Game 2" was the second most-watched series in the first half, and "Squid Game 3" ranked third. "When Life Gives You Tangerines" recorded 35 million views in the first half, "Trauma Center" 34 million, and "Weak Hero 1" and "Weak Hero 2" recorded 22 million and 20 million views respectively, totaling 42 million views. Recently, the animated film "K-Pop Demon Hunters" has also been creating a global sensation.
As the popularity of Korean content overwhelms that of Japan, the gap in appearance fees between Korean and Japanese actors, who share similar cultural backgrounds, continues to widen. According to the "Current Status of Japanese TV Drama Production Costs," the lead in a Netflix original series in Japan can receive over 10 million yen (about 93 million KRW) per episode, but this is still three to four times less, and in some cases up to ten times less, than what Korean actors receive. It is reported that the production cost for the Korean Netflix original "When Life Gives You Tangerines" was 60 billion KRW, and for "Squid Game 3" it was 100 billion KRW. The appearance fees for leading actors have reached record highs. While the standard production cost per episode for Korean dramas has become 2 billion KRW, in Japan, 1 billion KRW per episode is still considered sufficient.
"Maximum 400 Million KRW Per Episode" Netflix Sets Cap on Actor Appearance Fees
One of the biggest components of content production costs is actor appearance fees. Before the advent of OTT services, the average production cost per drama episode was 300 to 400 million KRW. While not a small sum, it was not a significant burden for production companies or broadcasters. Most importantly, actor appearance fees could be paid within that amount.
However, since Netflix entered Korea, the average production cost per episode has exceeded 2 billion KRW. This is the result of famous actors moving to OTT platforms, causing their fees to soar. Of course, Netflix has been willing to pay these costs and has seen corresponding results. The problem is that Netflix's fee policy has had a negative impact across the entire online video service (OTT) industry ecosystem.
Since Netflix entered Korea, the average production cost per episode has exceeded 2 billion won. This is the result of famous actors moving to OTT platforms, causing their fees to soar. The photo is not related to the specific content of the article. Pixabay
With production costs rising sharply, domestic production companies are struggling to create content. In fact, unable to bear the soaring production costs, domestic OTT platforms and broadcasters have been reducing the number of dramas they produce-from 141 in 2022 to 123 in 2023, about 100 last year, and an expected 80 this year. An industry insider stated, "The rapid increase in top actors' appearance fees is causing serious problems. Compared to previous waves of Korean content in Japan and China, the OTT-driven Korean Wave is seeing actual production costs far exceed reasonable levels due to the high fees of famous actors." Even for Netflix, actor appearance fees have become a significant burden. As the fees for top actors continued to rise without limit, Netflix has finally taken action. Recently, the company set a cap on actor appearance fees at a maximum of 400 million KRW per episode. While this is still not a small amount, it is expected to help rein in the runaway fees and lower overall content production costs.
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