The insights and strategies in the K-Streaming industry aimed at strengthening global competitiveness
As the Korean market is rapidly reorganizing around Streaming service, the Korea government has taken measures to strengthen the global competitiveness of the local streaming service and industry. The intention is to improve the system so that it can compete with global streaming service such as Netflix and Disney+.
To this end, Korea government plans to use artificial intelligence (AI) technology in all stages from content planning and production to distribution to overcome limitations in terms of capital, and to actively utilize FAST (Free Ad supported Streaming TV) on smart TV from Samsung Electronics and LG Electronics as well as local streaming service such as Tving to globalize K-content.
On the 19th Dec, 2024, the Ministry of Science and ICT announced the 'Strategy for Strengthening Global Competitiveness of the K-OTT Industry' outlining the same.
Through this, the ministry plans to expand the number of monthly users of OTT-FAST in Korea, which stood at 32 million as of last year, to 100 million by 2027.
"We will improve access to K-content by leveraging the 600 million Samsung and LG smart TVs in the world," said an official from the Ministry of Science and ICT. "In this process, AI technology can facilitate the globalization of domestic content."
For example, using AI technology to support dubbing of domestic content into the language of the country can help expand the market faster.
The ministry said it will support the production of 'K-FAST original content' and increase viewers by operating shopping services linked to it or making customized recommendations for local OTT.
It will also support the introduction of intelligent viewing services such as AI-based customized K-channel and OTT recommendations by inserting QR codes into shopping services linked to domestic content on these channels.
In addition, the government will support local streaming service companies to create short-form content using AI production and transformation technology to increase viewers.
This will improve the AI utilization rate in the broadcasting and OTT industry, which was at the 10% level last year, to 50% by 2027.
"In order to reduce the time and cost of broadcast video production and secure AI video technology, we will build 3 million hours of broadcast video accumulated over the past 70 years as AI utilization data," said an official from the Ministry of Science and ICT.
"We plan to expand support for broadcast video production that combines AI and digital technologies such as special visual effects (VFX), digital humans, and automatic editing through collaboration between broadcasters and ICT companies."
In terms of capital and manpower, the government has decided to fully support the virtuous cycle of domestic content.
It will utilize the K-Content and Media Strategy Fund, a KRW 1 trillion fund, to create content that targets the global market and create and support self-funds for technology investment by local streaming-FAST companies. The government also announced that it will train 11,000 people in the digital media sector.
The government's support for indigenous OTTs comes amid fears that the Korean content industry could be turned into a global subcontracting base as foreign OTTs such as Netflix cannibalize the market. According to the Korea Communications Commission, the operating losses of the three companies, Tving, Wavve, and Whatcha, totaled 24.32 billion won last year. Coupang also does not disclose separate operating results for Coupang Play, but it is believed to be losing money.
Ryu Je-myeong, head of the Network Policy Division at the Ministry of Science and ICT, said, "We hope that this OTT strategy will provide momentum for global expansion."
Take away
1. 📊 Key Growth Metrics in the K-OTT Industry
. The K-OTT industry is experiencing an annual growth rate of 8% .
. A separate growth metric indicates an even higher annual rate of 20% .
. These growth statistics provide a foundational understanding of the K-OTT sector's current performance.
. Insights into these metrics are vital for exploring the industry's global competitiveness .
2. 📊 Strategic Emphasis in K-OTT Industry
. The document focuses on strategies to strengthen the global competitiveness of the K-OTT industry.
. Insights are provided on the rapid growth rates, such as 8% and 20%, to assess industry dynamics.
. Understanding these strategies is crucial for stakeholders navigating market complexities effectively.
. Emphasizes the importance of collaboration and innovation for sustainability in a rapidly changing landscape .
3. 🤝 Importance of Collaboration in the K-OTT Industry
. The necessity of collaboration is a fundamental strategy for success in the K-OTT industry.
. Partnerships play a crucial role in enhancing market positioning in a globally competitive environment.
. Emphasizing collective efforts contrasts with individual strategic frameworks previously highlighted.
. Collaboration is key to achieving sustained success and advancing industry growth.
. Understanding these strategies can help stakeholders navigate the complexities of the market effectively.
4. 🔍 Key Highlights from K-OTT Industry Strategies
. Explore insights to boost global competitiveness in the K-OTT sector.
. Achieving growth through an annual rate of 8% to 20% is pivotal.
. Emphasizes the need for collaboration to enhance sustainability .
. Understanding these frameworks aids in navigating market complexities.
. Engagement equips stakeholders to contribute to industry advancements.
5. 📈 Strategies for Stakeholder Engagement in K-OTT Industry
. To engage effectively in the K-OTT industry, stakeholders must understand their roles and responsibilities clearly.
. Strategies should include actionable steps that build on previous sustainability discussions, leading to practical applications.
. Emphasizing collaboration and innovation is crucial to enhancing the industry's global competitiveness and sustainability .
. Stakeholders should focus on contributing to industry advancements through these strategic frameworks.
6. 🚀 Market Challenges and Opportunities in the K-OTT Sector
. The chunk focuses on analyzing the challenges faced by the K-OTT industry.
. It highlights the opportunities available in the market for strategic engagement by stakeholders .
. Understanding both challenges and opportunities is crucial for strategic planning in the K-OTT sector.
7. 📈 Future Trends in the K-OTT Industry
. The K-OTT industry's growth rate is projected to be 8% annually, reflecting a positive trend.
. There is potential for the industry to achieve an even more significant growth rate of 20% in certain areas.
. The analysis of future trends focuses on how these projections influence strategic planning and decision-making.
. Stakeholders are encouraged to remain proactive by understanding and leveraging these trend projections.
. Exploring these trends helps stakeholders devise strategies that align with market dynamics and growth trajectories.
8. 📘 Conclusion and Future Directions for K-OTT Industry
. The document concludes by synthesizing key insights and strategies discussed for enhancing global competitiveness in the K-OTT industry.
. Emphasizing collaboration and innovation is seen as crucial for maintaining sustainability in this evolving market .
. Future directions suggest stakeholders focus on strategic frameworks to navigate market complexities effectively.
. The conclusion reinforces the importance of understanding growth metrics, such as annual rates of 8% and 20%, to drive industry advancement.
. Engaging with these insights is essential for contributing to the K-OTT sector's progress and sustainability .