OTT platforms crack down on actor risk after costly controversies

"Cause a controversy and face the consequences"

Global streaming platforms are tightening their management of actor-related risk after a string of personal controversies involving cast members repeatedly derailed high-profile productions.

Per-episode fees for top-tier actors have surged from 100 million won ($73,600) to between 300 million and 500 million won depending on the star's profile. A single lead actor's scandal can bury a production worth hundreds of billions of won with no clear release date in sight — a recurring pattern that has inflicted heavy losses on streaming services.

Under the current industry structure, the financial and time costs stemming from an individual actor's misconduct fall entirely on production companies and crew members.

Streaming platforms are significantly strengthening morality clauses in their talent contracts and refining the criteria for calculating damages, allowing them to seek large penalty payments when an actor's illegal conduct or serious public controversy delays a release or causes financial harm.

They have also begun applying stricter internal guidelines to manage actor risk.

Netflix was caught in the fallout after controversy surrounding Ha Young, the lead actor of "Ireon Yeotgateun Sarang" (This Kind of Lousy Love), and subsequently dropped her from the new season of its hit drama series "Jungjeung Oesangsenteo" (Trauma Center), which she had originally been set to join.

The controversy — centered on allegations of pro-Japanese collaboration by Ha Young's great-grandfather — significantly disrupted Netflix's promotional strategy for the drama series, leading the platform to sharply scale back its marketing campaign.

Earlier, Netflix had also minimized actor Yoo Ah-in's screen time in "Jongmalui Babo" (Fools at the End of the World) following a separate controversy involving him.

Disney+ also indefinitely shelved the planned release of "Knock Off," a highly anticipated drama series starring Kim Soo-hyun, after a controversy surrounding the actor erupted. The production, which carried a budget of 60 billion won, was filming seasons 1 and 2 simultaneously, but work on season 2 was halted just before it was set to wrap. Despite the controversy having since been resolved, there are no plans to release "Knock Off" for now.

Global streaming companies are beginning to recognize that actor-related risk is particularly acute — and potentially fatal — in the South Korean market. While personal controversies involving actors rarely translate directly into damage to a production in overseas markets, in South Korea they can shatter audience immersion and even trigger public boycotts.

The industry's disproportionate dependence on lead actors means a single individual's problem can hold an entire production's capital hostage.

Experts stress that institutionalizing an actor risk management framework is essential for the K-content ecosystem to develop on a stable footing.

AI has also emerged as a potential solution, with moves underway to deploy AI actors to eliminate personal controversy concerns and cut production costs.

China has already seen AI actors make their debut. According to Chinese media, content studio Yaoke Media released a drama series featuring an AI actor in the lead role. Top Chinese actors command per-episode fees running into the hundreds of millions of won, and content studios have turned to AI actors to dramatically reduce both the risk and the fee burden associated with bankable stars. K-dramas are expected to feature AI actors before long.

park@heraldcorp.com