Basic options corresponding to shared development of content material and platforms and international distribution of movies and movies are wanted as a way to enhance the competitiveness of the Korean media trade, which is dealing with a disaster as a result of rise of world over-the-top (OTT) service suppliers corresponding to Netflix. That is in line with consultants on the Way forward for the Korean Media Trade Convention held by the Korean Cable Tv Affiliation (KCTA) on the Westin Chosun Lodge in Seoul on Sept. 4.
As generative AI has penetrated the media trade, there are additionally requires upgrading the information capabilities of the Korean media trade and considerably strengthening Korea’s media and content material pipelines.
“For the brand new regular of the Korean media trade, we have to develop the globalization of the Korean media trade and search new development momentum in promoting and commerce,” stated Lee Sung-min, a professor of media and video at Korea Nationwide Open College. He continued, “We have to create new floor to hunt modern future development engines in response to the growth of AI providers.”
Korean OTT service suppliers are dealing with rising deficits as content material funding surges amid fierce competitors for authentic content material. With development slowing as a result of emergence of the endemic, issues are rising amongst them over working losses. The typical manufacturing value per episode of a Korean present stood at 100 million gained in 2011, nevertheless it has risen to 1 to 1.2 billion gained (US$906 million) this yr. Whereas Netflix invests about 20 trillion gained in manufacturing yearly, Korean OTT service suppliers solely make investments about 1 trillion gained. Specialists say that amid the evolution of AI and globalization of OTT providers, the Korean OTT service trade wants to beat the disaster by creating twin manufacturing markets for international and native goal audiences, securing fundamental knowledge, and increasing collaborations and partnerships.
Jessica Fuk, a researcher at S&P International Market Intelligence, analyzed that the Korean market continues to be dominated by TV providers, because the cord-cutting and cord-never developments are much less prevalent than in america, China, and the UK. Nevertheless, globally, cord-never is intensifying, particularly amongst Technology Z, she stated. Fuk cited profitability, content material, collaborations and partnerships, and OTT laws as key components within the media trade.
“Streaming providers are all about leisure at house, and one technique to strategize is to mix them with house web of issues (IoT) providers,” Fuk stated. She additionally really useful that OTT service suppliers profit from bundled plans, partnerships with telecoms operators, and mergers and acquisitions (M&As).
The consultants all agreed that the Korean media trade is in a tough state of affairs as a result of growth of world OTT providers, a rise in single-person households, and the growth of quick channels. In Korea, in comparison with abroad international locations corresponding to america, cord-cutting (4.1 p.c) is low as a result of low charges for cable and pay TV providers and high-speed Web service-cable and pay TV service bundles. However a rise within the variety of single-person households makes a long-term outlook for the pay and cable TV markets poor, because it depends on a bundled product construction. They name for content material and platforms to develop collectively underneath these circumstances.
“In the long term, it’s unattainable to keep up the prevailing trade construction when cord-never turns into the mainstream or cord-cutting prevails as a result of a rise in single-person households in Korea,” stated Kwak Dong-gyun, a researcher on the Korea Info Society Growth Institute. “There’s a important chance that sustainability will likely be weakened because the Korean broadcast video trade ecosystem is reorganized.”
