Lawmakers claim "Netflix, thanks to 'Squid Game' earns 1 thousand times more profit"

연합뉴스 / 2021-10-14 16:22:51
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▲ This image, provided by Netflix, shows Netflix. (PHOTO NOT FOR SALE) (Yonhap) 

 

 

▲ These photos, provided by Netflix, shows Netflix original series "Squid Game." (PHOTO NOT FOR SALE) (Yonhap)

 

 

 

SEOUL, Oct. 14 (Yonhap) -- There has been a report that the global OTT platform Netflix has gained over 1,000 times more profit than its invest cost thanks to “Squid Game”

Netflix’s 20 billion won invested “Squid Game”’s market capitalization increased approximately 280 billion won (based on America’s Nasdaq Composite on the 6th) in about 3 weeks since release, according to inspection results of the government offices by lawmaker Kim Seung-su of People Power Party and of Cultural Sports and Tourism Committee Thursday.

“Compared to Netflix’s net profit of 1,166 times the invested amount, the producers’ income is 22~24 billion won. As Netflix is monopolizing the copyright, there has been no direct incentive for the South Korean producers since the series’ release,” said Kim.

Furthermore, Kim called for the government’s support saying that although foreign OTT platforms are helpful in expanding the domestic contents’ stage, “there are concerns of the domestic producers falling under foreign OTTs as the platforms may monopolize copyrights.”

“When profits exceed expectation, it is advisable for a consistent growth to secure the producers’ copyright to some extent in order to guarantee reasonable distribution of the profit between the producers, the creator of the production and the platform owner,” said Korea Copyright Commission about the issue.

“We will strive for to enable our producers to take stand on an advantageable position on securing rights such as IP by reinforcing our support project OTT contents production,” responded Korea Creative Content Agency (KOCCA).

Similar concerns were addressed from inspect of government offices over Cultural Sports and Tourism Committee related organizations such as KOCCA.

Park Jeung of Democratic Party of Korea emphasized the necessity of cooperation about IP rights between platforms and their contents producers for to strengthen domestic OTT competitiveness mentioning the Netflix’s contract style in which the platforms take over all the IP rights.

Park also highlighted the immediate demand for various forms of deals as global OTT platforms are speeding up its expansion to the Korean market.

“Above all, the contents industry retaining the IP is the most important,” said Jo Hyun-rae, the president of KOCCA.

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