Market Trends of South Korea Satellite Communication Industry
Increasing Need for High-speed Broadband Services
- Demand for high-bandwidth connections has increased due to the expansion of data-intensive applications like video streaming, cloud services, online gaming, and video conferencing. For a seamless user experience, many applications need fast and reliable internet access. Thus, high-speed broadband services are increasingly being adopted, allowing consumers to access these services.
- The country's demand for high-speed broadband services is increasing rapidly with the growing online gaming industry. The relatively large number of South Korean gamers lends support to the country's game developers and creates demand for broadband services. The country with a population of 50 million has 33 million gamers, the fourth-largest number globally.
- In April 2023, Netflix announced it would invest USD 2.5 billion in South Korea over the next four years to produce Korean TV shows, movies, and unscripted shows. Such investments by the media and entertainment companies are further expected to propel the demand for these services with the increasing adoption of online streaming in the country.
- According to Ministry of Science and ICT (South Korea), as of 2023, KT Corporation dominated the South Korean high-speed internet market, serving approximately 40.8 Percent of users. Alongside KT Corporation, other key players in South Korea's high-speed internet sector include SK Broadband, LG U+, and additional operators like CJ HelloVision and t-broad. With this rapidly growing use of internet video services, the demand for high-speed broadband services is significantly increasing in South Korea.
Understand The Key Trends Shaping This Market
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Media and Entertainment End-user Vertical Expected to Drive Market Growth
- Satellite communication plays an essential role in broadcasting and content distribution for the media and entertainment industry, ensuring comprehensive coverage and reach and making it possible to deliver content in areas with limited terrestrial infrastructure.
- The penetration rate of gamers within the Korean population is among the highest globally. According to a survey by the Korea Creative Content Agency, more than 71% of Koreans between 10 and 65 years old play games regularly due to the high-speed internet connection. Thus, the need for high-speed broadband services from users is rapidly increasing due to advancements in technology and new versions of games that require better connectivity.
- With the growing demand for satellite TV services, players operating in the market are undergoing strategic initiatives. KT, the satellite TV and internet service division of South Korea's largest telecom operator, partnered with a state broadcaster to commercialize a maritime satellite TV service for KT's satellite internet service users.
- In 2023, 56.74% of paid TV subscribers in South Korea used IPTV services. The rise of online content streaming and OTT streaming services is providing fierce competition to the traditional TV industry with the growing adoption of satellite TV services. The factors such as wide coverage, live content coverage demand, and broadcasting are collectively driving demand for satellite communication in the media and entertainment industry in South Korea.
