‘We basically gave up profit for exposure’: Netflix isn’t obligated to pay residuals in a hotbed for smash hit content, so it doesn’t

There can’t be many Netflix subscribers out there who haven’t watched at least a handful of Korean originals, with the country proving itself to be arguably the biggest hotbed for popular content outside of the United States.

After all, we’re talking about the nation that delivered Squid Game, the number one most-watched season of television in the platform’s history, and that’s just the tip of the iceberg. Sci-fi blockbusters The Silent Sea, JUNG-E, and Space Sweeper were all massive hits, as was dystopian action thriller Black Knight, supernatural horror Hellbound, remake Money Heist: Joint Economic Area, and on and on it goes.

And yet, Netflix is under no legal obligation – due to its status as a streaming service and not a broadcaster – to pay any residuals to the people involved in crafting Korean exclusives, so it doesn’t bother. As you can imagine, though, the local industry is desperate for change.

Speaking to The Los Angeles Times, an executive revealed the unfortunate compromise that had to be made.

“Management decided that if it’s distributed through Netflix, we’re not walking away with nothing. We basically gave up profit for exposure.”

Another exec outlined just how drastically Netflix’s presence in Korea had affected all facets of filmmaking, leaving smaller projects scrambling to play catch-up, or even keep their heads above water.

“The history of the South Korean industry can be divided into before Netflix, and after Netflix. They’ve brought in huge budgets and snapped up all the big-name actors and writers and directors.”

The creatives want Netflix to meet them in the middle and hammer out a deal, but just like their counterparts in the United States, there’s a long way to go before that happens.