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South Korea’s content Streaming Act faces Mounting Opposition
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A newly proposed law aimed at regulating content streaming services in South Korea is sparking widespread controversy, drawing criticism from both the public and industry experts. The “Content Streaming Act,” officially the Act on the Promotion of Fair Competition in the Digital Content Industry
,seeks to mandate that streaming platforms like Netflix,YouTube,and Coupang Play contribute financially to local content production and improve service quality.Though, opponents argue it infringes on freedom of expression, stifles innovation, and could lead to higher prices for consumers.
What is the Content Streaming Act?
The Act, proposed by the People Power Party lawmaker Lee Chul-gyu, requires Video On Demand (VOD) platforms with over 5 million monthly users and generating over 10 billion won (approximately $7.6 million USD) in annual revenue to invest at least 20% of their previous year’s revenue into original content production. This investment must prioritize Korean content. Furthermore,the Act mandates platforms to ensure stable service quality
,a vaguely defined term that critics fear could be used to justify censorship or excessive regulation.The Ministry of Science and ICT (MSIT) is the primary agency overseeing the implementation of the Act.
The Surge of Public Opposition
The declaration of the legislation triggered an immediate and ample backlash. Within just two days, over 60,000 citizens submitted objections through the goverment’s e-People portal, a platform for public opinion on proposed laws. This rapid mobilization demonstrates the depth of concern among South Korean internet users. the primary concerns voiced center around potential increases in subscription fees, reduced content choice due to the focus on Korean productions, and the possibility of censorship under the guise of stable service quality
.
Online communities and social media platforms are flooded with criticism,with hashtags like #StopTheStreamingAct trending. Many users express fears that the law will transform streaming services into extensions of traditional broadcasting networks, limiting access to diverse international content. A recent online petition garnered over 50,000 signatures, demanding the Act be withdrawn or substantially revised.
Industry Concerns and Potential Impacts
Streaming platforms themselves have voiced strong opposition.Netflix, a major player in the South Korean market, has publicly stated that the Act could hinder investment and innovation
. YouTube, while not directly commenting on the Act, has expressed concerns about the potential impact on its creator ecosystem. Smaller, domestic streaming services also fear being disadvantaged by the financial burden of the 20% investment requirement.
Experts predict several potential consequences:
- Increased Subscription Costs: Platforms are likely to pass the cost of the investment requirement onto consumers through higher subscription fees.
- Reduced Content diversity: A focus on Korean content could limit the availability of international shows and movies.
- Stifled Innovation: The financial burden and regulatory uncertainty could discourage investment in new technologies and content formats.
- Legal Challenges: The Act’s vague language, particularly regarding
stable service quality
, could lead to legal challenges based on freedom of expression concerns.
| Streaming Platform | South Korean Subscribers (approx. 2024) | estimated Annual Revenue (KRW billion) |
|---|---|---|
| Netflix | 16.4 million | 2,000+ |
| YouTube premium | 8.5 million |
