2.1.2 Market Trends
Although most of the content industries were adversely affected by the COVID-19 pandemic in 2020, the market has been growing in some areas such as games, digital cartoons, and OTT videos that can be used even in non-face-to-face environments. In particular, in the case of Netflix, thanks to popular shows like “Squid Game,” “Money Heist,” and “ Bridgerton,” the number of paid subscribers increased by 4.38 million in the third quarter of 2021, resulting in a cumulative number of subscribers of 213.6 million, an increase of about 9.5% compared to the same period the previous year. Disney +, which was launched in 2019, showed significant growth with 12 million subscribers joining in the second quarter of 2021 alone. This resulted in 116 million cumulative subscribers, double that of 2020. The market size of OTT videos is also expected to grow by about 10% by 2025, fueled by this growth.
Market Changes in Book and Publishing IPs
Intellectual property is defined as “ knowledge, information, technology, the expression of thoughts or feelings, the indication of business or goods, varieties of organisms or genetic resources and other intangibles created or discovered by creative activities, experience, etc. of human beings, the value of property of which may be realized.” (the Framework Act on Intellectual Property, Article 3).
One source of IP content can be used in numerous ways. This is called OSMU (One Source, Multi-Use) in Korea, and refers to original content with high potential for adaptation. In the uncertain content market, securing IP content that can be adapted in different ways allows IP holders to stand out in the industry and have an edge over potential competitors. IPs can also provide additional economic value at little cost. This results in a business model that fits seamlessly into the economy and creates synergies.
The global content market has been growing in all fields except for book publishing, which continues to decline. As the content market has grown, the distribution method of IPs provided by publishers has changed. As can be seeni n Figure 2, IPs supplied by publishers have expanded beyond simple books to audiobooks, podcasts, and even videos. Goldman Sachs has predicted that the music industry, which was worth 25.55 trillion KRW in 2019, will grow to 87.46 trillion KRW in 2030. Published books are obviously a rich source of stories which have the potential to make even more revenue if converted to audio or video content. It’s therefore seen as a market with a lot of potential.
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