Two Korean OTT platforms merge to compete with Netflix and YouTube
- 5 years ago
푹•옥수수 통합 공정위 승인…'국가대표 OTT' 내달 탄생
Two South Korean online streaming platforms are merging together to become the largest video service provider in the country.
The move is aimed at competing with global giants, such as Netflix and YouTube.
Our Choi Si-young with the details.
On Tuesday, South Korea's fair trade commission announced a merger of two online video streaming platforms.
One is Oksusu, operated by local mobile carrier SK Telecom, and the other is Pooq, run by Korea's three main broadcasters.
Starting service next month, the new integrated platform, called Wavve, will be the biggest video streaming service in the country by number of subscribers with 14 million,... almost seven times what Netflix has in South Korea.
30 percent of Waave will be owned by mobile carrier SK Telecom, while rest will go in three equal shares to the broadcasters.
Those opposed to the merger have raised the possibility that Korea's number-one communication firm SK Telecom might abuse its dominant market position.
The Fair Trade Commission listened to those concerns, and approved the merger on a few conditions.
For example, SK Telecom cannot discriminate against non-SK Telecom users by banning them from subscribing to the new Wavve.
And after the merger, the three broadcasters cannot start charging for content they've provided for free until now.
The two companies, through their merger, said they will attract large-scale investment and utilize it for content production.
They said they will not only defend the domestic market from Netflix and YouTube but also advance overseas, competing globally with their own original content.
Choi Si-young, Arirang News.
Two South Korean online streaming platforms are merging together to become the largest video service provider in the country.
The move is aimed at competing with global giants, such as Netflix and YouTube.
Our Choi Si-young with the details.
On Tuesday, South Korea's fair trade commission announced a merger of two online video streaming platforms.
One is Oksusu, operated by local mobile carrier SK Telecom, and the other is Pooq, run by Korea's three main broadcasters.
Starting service next month, the new integrated platform, called Wavve, will be the biggest video streaming service in the country by number of subscribers with 14 million,... almost seven times what Netflix has in South Korea.
30 percent of Waave will be owned by mobile carrier SK Telecom, while rest will go in three equal shares to the broadcasters.
Those opposed to the merger have raised the possibility that Korea's number-one communication firm SK Telecom might abuse its dominant market position.
The Fair Trade Commission listened to those concerns, and approved the merger on a few conditions.
For example, SK Telecom cannot discriminate against non-SK Telecom users by banning them from subscribing to the new Wavve.
And after the merger, the three broadcasters cannot start charging for content they've provided for free until now.
The two companies, through their merger, said they will attract large-scale investment and utilize it for content production.
They said they will not only defend the domestic market from Netflix and YouTube but also advance overseas, competing globally with their own original content.
Choi Si-young, Arirang News.