Webtoon Platform PODO Officially Announces Shutdown

On April 28, 2025, PODO, a Korean webtoon platform jointly established by Korean IT giant Kakao and Tencent, officially announced its shutdown.

The closure of PODO and Kakao’s withdrawal from overseas markets reflect the deeper challenges and strategic adjustments currently facing the global webtoon industry.

Below is a multi-dimensional analysis of this event:

I. Core Reasons Behind PODO’s Shutdown

1. Fading Industry Growth & Content Homogenization

Korean webtoons rapidly expanded through a “web novel adaptation + assembly-line production” model. However, over-reliance on repetitive tropes (e.g., reincarnation, revenge, romance) led to audience fatigue. Despite branding itself as a “premium platform,” PODO failed to break free from formulaic themes and art styles.
Declining user willingness to pay is directly linked to “overchoice”: In 2023, the number of new Korean webtoons surged by 27% (data from Korea Creative Content Agency), while average user spending dropped by 11%.

2. Stagnant Platform Competition

Kakao already operates KakaoPage (multi-entertainment) and Tapas (North America). As a latecomer, PODO lacked a clear positioning, missing exclusive hit IPs (e.g., Solo Leveling on Tapas) and struggling against localized rivals like Tencent Comics and Bilibili Comics.

3. High Costs & Profitability Pressure

Licensing fees and an ad-free model drove up operational costs. PODO never disclosed its paying user base, but analysts speculate its ARPU (Average Revenue Per User) failed to cover expenses in both Korean and Chinese markets.

II. Kakao’s Global Strategy Shift

1. Exiting Non-Core Markets

Withdrawing from Taiwan, Indonesia, and Europe reflects Kakao’s “focus on high-ARPU regions” strategy:
- Japan: Manga users spend ~ $220/ ye a r * *, f a re x cee d in g S o u t h e a s t A s ia (* *$ 50).
- Europe’s exit likely stemmed from poor localization (e.g., lack of French/German content).

2. Redirecting Resources to Japan & North America

Japan: Acquired Comico (2023) for local distribution and partnered with Shueisha (2024) for IP-based games.
North America: Tapas grew 34% in 2024, blending Webtoon + UGC (user-generated content) to reduce licensing dependency.

3. Avoiding Geopolitical Risks

Southeast Asia faces fierce competition from Chinese platforms (Webnovel, Bilibili Comics), while North America remains more receptive to Korean culture (Squid Game effect).

III. Implications for the Webtoon Industry

1. Urgent Need for Content Innovation

Demand is rising for interactive comics, AI-driven paneling, and fresh narratives. Naver Webtoon’s “Canvas” program (supporting indie creators) offers a potential solution to homogenization.

2. Diversifying Revenue Streams

Beyond subscriptions, ad-sharing (Line Manga) and IP adaptations (True Beauty dramas) are key growth drivers. By 2024, 40%+ of KakaoPage’s revenue came from non-comic ventures.

3. Localization Challenges in Emerging Markets

Southeast Asian readers prefer local themes (e.g., Indonesian Islamic romance). Mere translation of Korean webtoons isn’t enough. Thailand’s retention may hinge on Kakao’s partnership with telecom True.

IV. China’s Unique Impact

Despite Tencent’s stake in PODO, it prioritized its own platforms (Tencent Comics, Kuaikan). PODO’s inability to leverage Tencent’s traffic exposes flaws in the joint-venture model.
China’s 2024 “Comic Content Filing Rules” further squeezed foreign platforms’ viability.

Future Outlook

Kakao’s retreat may accelerate global market fragmentation:

Japan/Korea/North America: Dominated by Webtoon, Piccoma competing in full IP ecosystem development.
Southeast Asia/Latin America: Battlefield for local platforms vs. Chinese contenders (Webnovel).
Europe: Potential hub for AI-driven comics (e.g., France’s Youscribe AIGC projects).

PODO’s case proves that relying solely on capital and copycat models is unsustainable. The webtoon industry has entered an era of “content quality + tech innovation + ecosystem synergy.”