Home Audio and Cinema in South Korea

2021 DEVELOPMENTS

The popularity of home theatre instead of going to movie theatre

During the pandemic, consumers have been reluctant to visit cinemas to watch films, due to fears around being infected by COVID-19. Therefore, many new films have been launched via OTT services like Netflix instead.

Growth for domestic companies and decline for Japanese players

In 2021, domestic companies including Samsung Electronics and LG Electronics are expected to increase their sales, benefitting from the consumer boycott movement against Japanese products. This is causing second- and third-placed companies Yamaha Music and Sony Electronics to lose volume sales and share.

Offline channel as dominant distribution channel but declining

Electronics and appliances specialist retailers will remain the dominant distribution channel in 2021, despite a continued decline in share. Smaller electronics and appliances specialists, such as those the at Youngsan and Nakwon malls, will see a particularly noticeable decrease because consumers visited these less frequently during the pandemic, fearing contracting COVID-19.

PROSPECTS AND OPPORTUNITIES

Continual declines expected for digital media player docks and audio separates

Home audio and cinema will post persistently shrinking sales over the forecast period due to the reducing demand for digital media player docks and audio separates. However, consumers now prefer to have simple speaker systems with developed sound technology, like soundbars.

Other OTT services set to enter South Korea and somewhat mitigate category declines

Despite of Netflix’s strong presence, with over 10 million users in South Korea, more OTT services are continuing to produce new movies and TV series. Disney Plus, Apple TV plus, and HBO max by Warner Brothers will produce their own OTT service, as will SK Telecom, KT, CJ ENM, Watcha and Coupang Play.