Netflix touts 'Netflix effect,' where content is enjoyed as lifestyle, with 'Squid Game' as prime example
Netflix has selected Korea as a rising intellectual property powerhouse, poised to play a significant role in leading the market as media powerhouse the US struggles to generate fresh and novel ideas, according to experts who convened at the "Netflix Insight" press event at the Grand InterContinental Seoul Parnas in Gangnam, Seoul, Monday.
With the continued success of Korean content, Netflix views South Korea as a primary driving force for new storytelling, experts noted.
"The US remains an undeniable powerhouse in the media industry. However, there are phenomena being observed, one recent example being the limitation of Marvel's expansion," said Noh Chang-hee, director of the Seoul-based Institute of Digital Industry and Policy.
"It seems the US has reached a point where it no longer produces scenes that feel truly fresh or novel," Noh explained.
Lee Sung-min, an associate professor in the department of media arts and sciences at Korea National Open University, added that Netflix is choosing Asia as a hub for creativity, with Korea leading the region.
"Korea is playing the role of a director in elevating the creative ecosystem across Asia as a whole," Lee said. "The country is enhancing the creative capabilities of the talents within it."
Jung Duk-hyun, a pop culture critic who moderated the session, further emphasized Netflix's investment in Korea's visual effects industries.
The Ministry of Trade, Industry and Energy announced in 2022 that Netflix would invest $100 million in Korea through 2028. The investment was announced to go to Scanline VFX Korea, a Netflix special effects subsidiary in Korea.
"I found that particularly meaningful because such investments are directed at the foundational aspects of the content industry. These are resources that we can continue to utilize in the future," Jung said.
In another session, Paik Young-jay, Asia–Pacific globalization director at Netflix, explained that the platform uses a unique algorithm to suggest content tailored to audience tastes.
"Unlike traditional media companies that typically recommend works based on specific factors such as gender and age, Netflix examines all aspects of content, including its themes, cast and whether it is funny or emotional, when creating suggestions," Paik said.
He cited content that is suggested to fans of Netflix Korea's entertainment sports show "Rugged Rugby."
"You probably didn’t expect 'Rugged Rugby' to be connected with romance content," said Paik. However, Netflix's algorithm found that people who watched "Rugged Rugby" also enjoyed dating reality shows, Paik said.
Oh Soey, senior manager of consumer products at Netflix Korea, added that Netflix aims to expand the viewing experience beyond the screen.
"Even when people aren’t watching content, we try to create various touchpoints in their daily lives that can serve as reminders, sparking their interest in the content," said Oh.
One work that Netflix has particularly focused on to achieve this goal is the second season of "Squid Game."
“We approached 'Squid Game' season two not just as a single piece of content, but as a celebration of Korean culture," Oh said, noting a series of collaborations with domestic and overseas retail brands, including Kakao Friends, Olive Young and Casetify.
"We refer to the phenomenon of enjoying content as a lifestyle as the 'Netflix effect.' What’s truly fascinating is that the Netflix effect doesn’t happen forcefully," Oh said.
"It’s a phenomenon created by the fans themselves, as they share and engage with it among each other."
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