Korea's domestic operators grew larger through mergers, and aims to challenge Netflix, the current market leader in Korea's over-the-top (OTT) media or video streaming sector.
Tving and Seezn's Merger
The telecoms operator KT stated on July 14 that it had reached an agreement with CJ ENM to merge its platform for streaming services, Seezn, with the latter's platform, Tving, according to a report by The Korea Times.
Through the agreement, Seezn will be absorbed by Tving, the largest Korean-owned streaming network. Tving will then surpass Wavve, a streaming service created by SK Telecom and three major TV networks-KBS, MBC, and SBS-to become the No. 2 domestic streaming platform with over 5 million monthly active users.
In 2020, Tving was spun from CJ ENM, with CJ ENM owning a 57% ownership. On the other hand, the news outlet noted that the media content subsidiary of KT, KT Studio Genie, owns Seezn entirely.
Meanwhile, a KT representative stated that the company anticipates the merger to be favorable for both KT and CJ ENM.
According to Choi Min-ha, a researcher at Samsung Securities, the agreement between KT and CJ ENM should be favorable because it would increase Tving's market share by making it easier for KT's mobile carrier service users to use Tving.
Dominance of the domestic streaming market will now come down to a competition between who can provide better and more distinctive content, industry analysts and officials said on Monday.
The Korean Streaming Market Is Becoming More Competitive
There are11.17 million monthly active users in June, Netflix led the streaming market in the country, followed by Wavve (4.23 million), Tving (4.02 million), and Coupang Play (3.73 million), according to data tracker Mobile Index. With 1.56 million members, Seezn was the No. 6 competitor, just ahead of Disney Plus (1.68 million), as per The Korea Times.
According to statistics made public locally, the combined company would have more than 5 million users, surpassing Wavve, the largest platform in the nation as of right now with 4.23 million.
Meanwhile, Variety noted that savings on marketing expenses and an increased subscriber base that includes KT's 14 million cell phone customers are two benefits of the merger that have been promoted. KRW18 billion ($13.8 million) was reportedly spent on marketing by TVing last year.
An anonymous industry official noted that (via The Korea Times), at a time when the streaming market is experiencing intense competition, "many people are subscribing to multiple streaming service platforms, so it will be more important for platform operators to constantly provide quality and attractive content to users."
With Disney+ making a strong debut, the local Amazon-like service Coupang Play making progress, and the introduction of Apple TV+, Variety pointed out that the streaming market in Korea remains fiercely competitive. However, if Warner Bros Discovery finally launches HBO Max in Korea or if Amazon takes a more significant action, the Korean streaming market may become much more competitive than it is today.
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