despite a wave of international interest in south korean film and television the stock prices of many of the country’s production companies have been in a slump shares of studio dragon corp one of south korea’s largest producers have plunged about 25 this year despite the company having produced the glory one of netflix inc’s most popular titles while korea’s stock benchmark has risen 10 over the same period clsa securities korea downgraded studio dragon in may citing concerns about its “insufficient bargaining power” the problem as some people in south korea’s entertainment industry see it is the overwhelming importance of a single channel to distribute their content “as a studio and as a producer i’m a little concerned that netflix has been the only channel global audiences can watch korean series on” says jeongin hong hong’s firm sll signed a multititle licensing deal with netflix soon after the streaming service made its debut in south korea in 2016 then went on to produce some of its biggest hits including all of us are dead the fourthmostwatched nonenglish language series in netflix’s history having expanded his company’s output hong worries that netflix has amassed too much power it has twice as many customers in south korea as the no 2 streaming service tving and is the only global player with a major presence in the market this dynamic has enabled netflix to be picky about the projects it chooses and to dictate the terms shares in contentreejoongang corp the majority owner of sll have declined almost 20 this year many tv producers and regulators have long worried that usbased companies such as netflix and amazoncom inc would decimate localtv networks dominating every major market and smothering homegrown players before they can develop as has happened in social media netflix now accounts for 33 of streaming video subscribers in south korea and for 42 of premiumvideo viewership in southeast asia according to media partners it also accounts for 30 or more of customers in the uk france and sweden according to midia research many countries have sought to preserve their tv and film industries by requiring all streaming services to invest in local programming no nation has been more of a protectionist than france which has mandated that the services invest at least 20 of their revenue from within the country into local programming france has also stipulated that three years must pass before theatrical releases can appear on a streaming service though last year it reduced that window to 15 months the law in france has forced netflix and its peers to increase their output of local originals in a short period of time other countries have similar if less onerous regulations this year canada passed a law that will require streaming services to support local content the rule has yet to go into effect australia is contemplating a similar measure netflix declined to comment for this article but the company has said it doesn’t oppose laws requiring minimum investments in local content so long as they’re not overly restrictive about the form that investment takes for decades south korea has had rules in place intended to protect the local film industry from foreign competition and the distribution of us content in the country has at times led to tension in trade negotiations and local protests in theaters showing us films but korea’s recent experience shows the limitations of laws requiring foreign companies to invest locally the problem isn’t that netflix doesn’t want local content instead the concern is more that its reach gives it an edge over local distributors when it comes to acquiring shows and movies enabling it to take much of the value of south korean content back to california “directors want international fame and international coverage” says hong “that can only come from netflix” the streaming service has long dismissed talk of its market power while rival executives in the us such as fx networks llc chief john landgraf used to fret about a looming netflix monopoly the company accounts for just 7 or 8 of tv viewing in the us its largest market its corresponding market share in other major markets is also in the single digits netflix has noted that it faces competition from walt disney co and amazon and also cites youtube tiktok and video games as major rivals south koreans spend far more time watching youtube than netflix according to media partners asia attempts to protect local entertainment industries could backfire in many places says michael geist a canadian professor who’s one of that country’s leading experts in internet and ecommerce law netflix and its peers are already investing billions of dollars in local programming and could pull back from less profitable countries at a time when investors are pressuring them to increase profit margins cuts by us media companies such as disney and warner bros discovery inc may drive filmmakers deeper into netflix’s arms one of few streaming services along with amazon seeking to increase its investment in local productions for producers in places like south korea the impact of this largesse is complicated earlier this year netflix said it would spend 25 billion in the country over the next few years shares in south korean companies gained on the news only to slump in the following weeks