Amid Intensifying OTT Competition, Can Free Ad-Supported Streaming Unlock New Opportunities for K-Content?

Amid analysis that the domestic online video service (OTT) market is saturated with competition, voices are emerging to re-examine the growth direction of K-content. While K-content is gaining attention in the global market, it is pointed out that the current distribution structure and revenue models are dependent on major overseas platforms.

Consequently, the necessity for distribution, advertising, and channel realignment through Free Ad-Supported Streaming (FAST) services has been raised. Presented as the next step for the global expansion of K-content, FAST is expected to serve as a new broadcast network that can directly distribute content to over 2 billion viewers, buoyed by the widespread adoption of smart TVs.

The FAST market is rapidly expanding. It grew by more than 50% in two years, from approximately 1,100 channels in mid-2023 to 1,700 by early 2025, and the market size is projected to reach $12 billion by 2027.

While the domestic OTT market faces structural difficulties due to subscriber saturation and limited investment capacity, global major platforms are changing their market structures, growing by combining subscriptions and advertising or focusing on FAST-based models.