Media - South Korea

South Korea

Revenue in the Media market is projected to reach US$35.40bn in 2024.
The market's largest segment is Games with a market volume of US$13.70bn in 2024.
In global comparison, most revenue will be generated in the United States (US$526.50bn in 2024).
In the Media market, 53.23% of total revenues will be generated through digital media in 2029.

Key regions: United States, China, Japan, United Kingdom, Germany

Market

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Analyst Opinion

The Media market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: South Korean consumers have shown a strong preference for digital media platforms, with online streaming services gaining popularity. This shift in preference can be attributed to the convenience and accessibility offered by these platforms. Additionally, there has been an increasing demand for localized content, leading to the rise of domestic production companies and an emphasis on creating content that resonates with the local audience.

Trends in the market: One of the key trends in the South Korean media market is the dominance of the K-pop industry. K-pop has gained a massive global following, and this popularity has translated into increased revenue for the industry. The success of K-pop has also led to the growth of related industries such as entertainment agencies, merchandise sales, and concert tours. This trend is expected to continue as K-pop continues to gain international recognition. Another trend in the South Korean media market is the rise of online gaming and esports. South Korea has a strong gaming culture, and this has fueled the growth of the esports industry. Esports tournaments attract a large audience both online and offline, and this has created new opportunities for advertisers and sponsors. The popularity of online gaming and esports is expected to continue growing, driven by advancements in technology and the increasing accessibility of gaming platforms.

Local special circumstances: South Korea has a highly connected population, with one of the highest internet penetration rates in the world. This has created a conducive environment for the growth of digital media platforms. The government has also been supportive of the media industry, implementing policies to promote the development of the sector and attract foreign investment. Additionally, the strong presence of local conglomerates, known as chaebols, in the media industry has contributed to its growth.

Underlying macroeconomic factors: South Korea has a strong economy and a high standard of living, which has contributed to the growth of the media market. The country has a large middle class with disposable income, enabling consumers to spend on media and entertainment. Furthermore, South Korea has a well-developed infrastructure and advanced technology, providing a solid foundation for the growth of the media industry. In conclusion, the Media market in South Korea is experiencing growth due to changing customer preferences, such as the shift towards digital media platforms and the popularity of K-pop and esports. The local special circumstances, including a highly connected population and government support, have also contributed to the growth of the market. Additionally, the underlying macroeconomic factors, such as a strong economy and high standard of living, have provided a favorable environment for the media industry to thrive.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on media spending (on traditional media as well as digital media). All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet consumption. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.