With the rise of global over-the-top (OTT) platforms such as Netflix and Disney+, the internationalization of cultural products has shifted from a gradual, market-by-market expansion to instantaneous globalization. However, despite the borderless reac...
With the rise of global over-the-top (OTT) platforms such as Netflix and Disney+, the internationalization of cultural products has shifted from a gradual, market-by-market expansion to instantaneous globalization. However, despite the borderless reach of digital platforms, only a limited number of films achieve global circulation. This raises a central question: which signals determine whether a film is selected by global OTT platforms?
Drawing on signaling theory, this study develops a multi-level global status signaling framework to examine how film-level and production-level status cues jointly influence the likelihood that Korean films are selected by global OTT platforms. Film-level global status—measured by awards and nominations from international film festivals—represents artistic legitimacy, whereas production-level global status reflects organizational legitimacy and industrial prestige within the global evaluative system. The study further proposes that the interpretive effectiveness of signals depends on the interaction between different levels of status cues.
Using a dataset of 139 Korean films released in 2023, we test whether each film was selected by global OTT platforms such as Netflix and Disney+ through logistic regression analysis. The results reveal that, first, film global status significantly increases the likelihood of global OTT selection, suggesting that external recognition conferred by international film festivals provides highly credible, cross-culturally interpretable signals that reduce information asymmetry in global platform evaluations. Second, production global status—measured by whether the production company received international awards or nominations within the past three years—also exerts a positive effect, confirming that organizational-level reputation functions as a transferable legitimacy resource that supports cross-border diffusion. However, the interaction between the two exhibits a significant negative effect, indicating a signal substitution mechanism: when both the film and its producer hold high global status, the marginal informational value of additional film-level recognition declines due to redundancy or saturation.
Theoretically, this study extends the boundaries of signaling theory by conceptualizing status as a dynamic, hierarchical, and context-dependent signaling mechanism. The findings demonstrate that the effectiveness of signals depends on the degree of overlap between multi-level status cues rather than their quantity. By integrating status hierarchy theory and the multi-level signaling validation framework, this study reveals how product-level and organizational-level status signals interactively shape external evaluations and legitimacy construction within the governance systems of digital platforms.
Practically, the findings suggest that film producers should strengthen the cross-cultural translatability and institutional recognizability of their status signals through sustained participation in international film festivals and co-production networks. Meanwhile, global OTT platforms should avoid overreliance on prestige-based signals, focusing instead on the incremental informational value and substantive quality of content to balance algorithmic efficiency with cultural diversity—thereby fostering more inclusive and sustainable global cultural flows.