The video-streaming war in South Korea is intensifying, with CJ ENM and broadcasting firm JTBC the latest to join the battleground.
The two companies announced Sept. 17 that they have signed an agreement to set up a joint venture for video-streaming services. They will also launch a new platform, based on the existing streaming service Tving owned by CJ ENM, early next year. CJ ENM will be the largest shareholder in the JV.
“In order to gain a competitive edge in the growing video-streaming market, diverse contents need to be available on the platform and profits should be reinvested to create them,” said an official from CJ ENM, adding that “the two companies will keep working together to produce quality original contents that appeal to consumers around the world.”
The collaboration comes as global and domestic tech firms and entertainment businesses are entering the video-streaming, or over-the-top service space.
At its annual conference earlier this month, US tech firm Apple announced its plan to launch video-streaming service Apple TV+ in November, with a much lower price of $4.99 per month, compared to Netflix, and Amazon.
Local broadcasters and network operators are recently joining forces to stack up against the global players.
Three local broadcasting firms, KBS, MBC and SBS, and the nation’s largest mobile carrier SK Telecom on Sept. 16 launched their video-streaming service Wavve, targeting the Asian markets.
They aim to attract five million paid subscribers by 2023, spending 300 billion won ($254 million) to create original contents.
The nation’s antitrust watchdog in August approved the merger of SKT’s video streaming service Oksusu and streaming platform Pooq, jointly operated by the three broadcasting firms.
The combined users of the two video-streaming services are 13 million, and the four companies aim to attract five million paid subscribers in three years.
By Kim Young-won (firstname.lastname@example.org)