Netflix is now open to enter partnerships with Korean mobile carriers and broadcasters as it prepares to launch its streaming services in the Asian country.
Beginning January 2016, customers in South Korea can access the company's popular streaming services, which it started back in 2007 after originally running a DVD rental service. According to Netflix, South Korea makes an ideal location for it to expand its online streaming service since the country is known for having the world's fastest Internet speeds.
If plans push through, South Korea will become the second country in the region to enjoy the company's streaming service following the launch of the service in Japan a few days ago.
"Netflix will make its debut in Korea in January 2016," said one of the sources.
Another source added that "conditions in Korea are as favorable or better than they are in Japan."
Netflix's plan to team up with local service providers in Korea will be patterned after its strategy in Japan, where the company's app was pre-installed on mobile devices by Japanese company SoftBank for customers in the region.
Korean telecom companies such as LG Uplus, KT and SK Telecom are yet to comment on Netflix's plans of expansion.
Netflix now operates in over 50 countries and has continuously seen growth in its subscriber base, which now reaches a whopping 65 million in number, 23 million of which are said to be located outside the U.S. In recent years, the company has been focusing strongly on expanding its services abroad. This year, it has also successfully launched its streaming services in Australia and New Zealand while plans of expansion in Spain, Portugal and Italy are underway toward the end of 2015.
One concern for the company, however, is how it will be able to get enough support from carriers in South Korea to successfully offer its streaming services at the same low cost while having to deal with the country's high cost of content delivery.
"When you see more data traffic, then Netflix will pay more for the delivery of content," a source said. "However, charges of its main services were low, and that's why Netflix needs substantial help from Korean carriers, which operate networks. Netflix is on track to narrow differences over content licensing."
