While YouTube remains popular in the U.S. and in various markets across the globe, it has been met with tepid responses from users in South Korea. The video-sharing site is struggling to compete against homegrown, better-established rivals, while domestic Internet companies are accusing its government of unfairly coddling Google.
According to Rankey.com, a Korean Web traffic monitoring firm, the English and Korean versions of YouTube drew 382,000 visitors on January 23, 2008, which is when the Korean version of the site was unveiled at Shilla Hotel, one of the more prestigious hotels in Seoul. However, the initial excitement faded quickly, with daily visitors dropping to 115,000 by January 31.
Currently, Pandora TV is the top video-sharing site in Korea, with 997,000 daily visitors. Mncast, Mgoon, Gom TV, and Afreeca also boasted bigger audiences than YouTube in Korea.
Still, YouTube appears upbeat about its prospects in Korea, indicating that promotion campaigns will be launched in March to boost its awareness in the high-tech country.
Google has been met with some criticisms in Korea because of its cushy relationship with the local government there. The Ministry of Commerce, Industry and Energy signed a contract with Google in 2006, basically giving Google 1.25 billion won over the next two years in exchange for an R&D center based in Korea. In addition to this, the Ministry also agreed to pay 80% of the search giant’s paid wages to its Korean employees. All of this is in hopes of Google investing more of their technological and financial strength into Korea.
Domestic Internet firms are crying foul. Their contention is that the Korean government is strongly supporting Google while neglecting to offer any sort of financial help to encourage them to expand into the U.S. and other international markets. These firms are also claiming that the 1.25 billion won of support from the Korean Ministry is only going to pay for the majority of Google’s 1.3 billion won yearly rent at the Gangnam Finance Tower, one of the most pricey office buildings in the country.
South Korea is one of the most wired nations in the world, which makes it an obvious target expansion market for Google and any other major Internet player out there. However, this story may highlight Google’s subtle reputation shift overseas, and in the U.S. While the company has always tried to avoid being “evil,” it’s clear that it is teetering closer and closer to that line in Korea, a major Internet market. Google’s recent maneuvers to get in between Microsoft and Yahoo also point to the ever-growing notion that it has transcended its former role of trendy underdog and may be slowly becoming the stodgy, unlikable giant that Microsoft once was.
Source:
http://www.koreatimes.co.kr/www/news/sports/2008/02/133_18413.html
Jason Hahn
e: jhahn221@gmail.com
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