Korean Entertainment Industry Growth Stalls at 3% Annually... Restructuring Expected Amid Intensifying Competition

Global Growth Rate at 3.4% Annually
Korean Market Enters Maturity Phase
Industry Restructuring Expected Amid Intensified Competition
"Monetization Capabilities Using AI and IP Will Be Key"

On June 30 last year, citizens and foreign tourists enjoyed games at the Squid Game pop-up event held at Gwanghwamun Square in Seoul to celebrate the 2025 K-Content Seoul Travel Week. Photo by Yonhap News

Korea's entertainment and media (E&M) industry is projected to grow at a rate below the global average. As the local market has already matured earlier than many others, competition is intensifying, accelerating industry restructuring. With the battle shifting from subscriber acquisition to monetization, strategies for utilizing artificial intelligence (AI) and intellectual property (IP) have emerged as critical challenges.

On July 27, Samil PwC released its 'Global Entertainment and Media Outlook' report containing these findings. Now in its 27th annual edition, this report analyzes and forecasts the E&M industry across 12 sectors in 53 countries and regions.

According to the report, the global E&M market is expected to grow at an average annual rate of 3.4% to reach 4.2 trillion dollars by 2030. Among the various sectors, advertising is projected to exceed 1.4 trillion dollars by 2030 and is seen as the largest area of growth, driving the overall expansion of the industry.

The report notes that while AI and digital technologies are rapidly transforming the ways content is produced, distributed, and consumed, the essence of the industry remains rooted in 'human experience.' Consumers increasingly desire a greater abundance of content and digital accessibility, but at the same time place higher value on real-world content—such as sports events, concerts, exhibitions, and live events—that allows for shared experiences with others. Termed the 'shared reality' trend, the report identifies this as one of the key future growth engines for the entertainment industry.

The advertising market is viewed as the primary beneficiary of these shifts. Advertisers are expanding investments to get closer to the touchpoints where consumers experience content and make purchasing decisions. Retail media, streaming advertising, and digital out-of-home advertising are emerging as new growth pillars. In addition, AI is expected to further bolster the advertising market’s growth by advancing user behavior analysis, personalization, and advertising performance measurement.

The report also concludes that the streaming industry has reached a pivotal turning point. The global OTT (over-the-top streaming) market is forecast to reach approximately 304 billion dollars by 2030; however, due to a growing sense of so-called 'subscription fatigue' among consumers, traditional strategies focused on expanding subscriber numbers are reaching their limits.

In response, major platforms such as Netflix, Amazon Prime Video, and Disney Plus are expanding ad-supported subscription models and securing broadcasting rights for live sports. The report predicts that streaming platforms will continue to evolve into comprehensive entertainment platforms covering films, dramas, music, sports, games, and user-generated content (UGC).

The basis of platform competition is also shifting. Whereas success was once predominantly determined by the quantity of content and number of subscribers, the ability to effectively acquire, analyze, and convert user data into business performance has become key. In particular, as AI-driven personalized advertising and content recommendation technologies advance, advertising-based OTT services are anticipated to grow faster than subscription-based services.

Meanwhile, as the global influence of K-content such as dramas, music, and webtoons expands, Korea’s E&M market is projected to increase at an average annual growth rate of 3% from 2025 to 2030. This is slightly below the global average growth rate forecast of 3.4%. With Korea set to rank as the ninth largest E&M market in the world by 2030, the market is seen as entering a mature phase rather than focusing on external expansion.

However, the report emphasizes that a slowdown in the growth rate does not indicate declining industry vitality. On the contrary, the Korean market is recognized as one of the most dynamic in terms of industrial transformation, with rapid advancements in advertising and content production leveraging AI and data, retail media growth, expansion of ad-supported models, intensified competition in sports and short-form content, and the ongoing restructuring of the OTT and broadcasting sectors. The report suggests that the ability to monetize K-content and secure data-driven advertising capabilities will be crucial determinants of future competitiveness in this environment.

Further details of the report can be found on the Samil PwC website. Beomtak Lee, Entertainment & Media Industry Leader at Samil PwC, commented, "The Korean E&M market is entering a phase where structural transformation is more important than external growth. Companies must leverage data, AI, and IP as powerful tools, but ultimately, must also possess the creativity and execution capabilities to translate these into differentiated customer experiences and value."

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