As Walt Disney (Disney)’s online video service (OTT) and Disney Plus (+) enter the domestic market, OTTs are eager to secure’exclusive content’ for competitiveness.
As a business operator,’content competitiveness’ is regarded as the most important means for securing subscribers, but there are concerns that the subscription burden may increase for consumers as content subtraction from competing services to secure exclusive content appears to be quite a few.
◇Disney’s’Subtracting Content’ from Watcha Wave Ahead of Advancing to Korea
Korea’s OTT service Wave announced on the 4th that it will service more than 100 Disney contents, which were provided to monthly subscribers at its service movie theater, only until the 30th. Star Wars: The Force Awakens ΔThe Avengers ΔThe Lion King ΔBeauty and the Beast ΔToy Story ΔIron Man, and other popular animation and Marvel content. This is not the first wave to subtract Disney’s own content. In December of last year, when the possibility of Disney+’s entry into the country was raised, the provision of Disney contents was also stopped in the domestic OTT service’Watcha’.
An official from Wave explained, “The termination of Wave’s Disney content service is only due to differences in terms of contract period for each business operator.” It is explained that it was not aimed at a specific business or a specific point in time.
In addition, Disney started the Disney+ service last year and stopped supplying content to Netflix. Currently, in countries where Disney+ has not entered, Disney content is still available on Netflix, but in countries in which Disney+ has entered popular content such as Marvel, rooms are excluded.
◇ Promote reinforcement of exclusive and original contents for both OTT… Deepening’content fragmentation’
However, as most OTT services promote securing original and exclusive contents that are “visible” as a competitive strategy, the phenomenon of content fragmentation is expected to increase gradually.
Netflix has produced and provided more than 80 original contents to the domestic content market, starting with’Kingdom’ in 2019, and has greatly increased its domestic market share.
In particular, in the wake of the corona 19, theater artists have been stagnant, investing in domestic film distribution and production companies, and exclusively unveiled’Seungri-ho’ this year. It announced plans to produce an original movie for the first time in Korea.
It is not just an overseas OTT service. On the 15th, OTT Teabing, a group of CJ ENM, decided to release the movie’Seobok’ starring Park Bo-gum and the movie’Seobok’ only at the theater and Teabing.
Wave also advertises’Penthouse Jeong Ju Haeng is only in Wave’ for the popular drama Penthouse 1 and 2, which aired on SBS.
Due to this trend, content consumers are increasingly subscribing to multiple OTTs, unlike in the past when only one OTT was sufficient.
Currently, not a few OTT consumers are subscribed to two OTTs in the same way as’Netflix + Wave · Teabing · Watcher. Although it is intended to view various contents, there are many people who feel burdened by the increasing monthly subscription fee.
Han Dae-il (36), who is subscribed to Netflix and Wave together, said, “I have a 4-year-old child at home, and if Disney+ enters Korea, I think I will have to subscribe to Disney+, which has many children’s favorite content.” “It’s a bit burdensome to subscribe to three, not just one.”
◇“Strengthening the trend of multiple OTT subscriptions… Pay TV·OTT conversion rate will increase”
If additional overseas OTTs, including Disney+, enter Korea in the future, the burden on consumers’ content subscriptions will increase, but some academia point out that such an increase in spending is a process of’normalizing’ for the domestic media and content markets. . Lee Seong-min, a professor at the Department of Media and Visual Science, Korea National Open University, said, “When OTTs look at strategies such as increasing originals and collecting exclusive contents as their own services, we will be woven into a structure in which multiple OTTs are subscribed like paid channels in the past.” .
Regarding concerns about the increase in consumer burden, Professor Lee said, “The Korean media industry has been pointed out that there is no room for content investment since 20 years ago, Korea’s pay TV fees were fixed at a low price of 10,000 won, unlike the United States, where Korean pay TV bills were spent over 100,000 won per month. “If you consider the GDP growth rate compared to 20 years ago, it seems that the consumption capacity for content has risen sufficiently based on middle-class households.”
He added, “It is expected that the amount of money spent on existing pay TV will gradually be converted into OTT subscription fees.” “Considering the current level of monthly subscription fees for pay TV products, even if consumers subscribe to multiple OTTs, the actual increase in expenditure will not be significant.” did.
(Seoul = News 1)
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