Behind the Curtain: The Explosive Birth and Global Takeover of Korean Webtoons
Naver Webtoon has emerged as a dominant force in the webtoon ecosystem, securing the top spot in manga-centric countries like Japan and the United States. Launched in 2005, this digital comics service has been a significant driver in opening new horizons for Korean culture, making its upcoming NASDAQ listing a noteworthy event beyond the webtoon industry itself.
From Subculture to Global Dominance:
The Journey of Korean Manhwa in the Digital Age
Naver Webtoon, which identifies major competitors like Netflix and YouTube, has expanded to over 150 countries, boasting 170 million monthly active users and generating $1.3 billion in revenue in 2023. With over 24 million creators and more than 55 million pieces of content, Naver Webtoon has created a platform where anyone can become a creator, absorbing IP from around the world.
This platform has become a foundation for global fandoms and has sparked the emergence of a new entertainment industry. By expanding into second creations such as dramas, movies, and animations, Naver Webtoon has broken down language and media barriers. In just 20 years, it has pioneered a new market, transforming into a top-tier company advancing into the global market.
The Explosive Rise of Manhwa into a Global Digital Powerhouse
Empowering Creators and Building a Community
Naver Webtoon’s success lies in its ‘Challenge Comics’ system, which played a crucial role in elevating webtoons from a subculture to a mainstream industry. This program allowed amateur creators to easily showcase their work, creating a pathway for many to transition from challenge comics to official serializations and become star creators.
The platform’s ‘Weekly System’ and the Naver Creator System (PPS — Partners Profit Share) have also been pivotal. By improving the profit structure, the creative environment has been enhanced, leading to more engaging webtoons. Naver Webtoon has maintained an organizational culture centered on equal opportunities, individual decision-making, and performance.
Revenue Model and Challenges
Naver Webtoon’s primary revenue source is paid content within the platform, particularly through a microtransaction model known as ‘Cookies’. While Korean readers are generally more accepting of this payment model, it has not been as widely adopted in regions where the culture of enjoying comics online is still relatively new, like North America.
Implementing this cookie-based revenue model in the North American market may not yield significant results unless the webtoon industry reaches a more mature stage there. However, the growth potential in Japan and other Asian regions positively influences the company’s valuation.
Currently, the focus in North America is on raising awareness about Webtoon Entertainment, which involves high marketing costs. As the business stabilizes, expenses will primarily be limited to content-related costs. The initial financial losses are typical for the early stages of business development.
As webtoons become more familiar to global audiences, there is potential for increased willingness to pay for content. Efforts to nurture local creators who can produce culturally relevant content could lead to smoother acceptance and integration.
Just as Netflix and Disney+ overcame initial hurdles in the North American market, Naver Webtoon could follow suit. Post-listing, the company will need to resolve the dilemma between content diversification and profit growth, while expanding its intellectual property utilization.
Naver Webtoon’s NASDAQ listing is not just a milestone for the company but also a significant event for the broader digital content industry, reflecting the growing global influence of Korean cultural products.
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