Global online video service (OTT) Netflix is infiltrating the daily lives of domestic viewers by partnering with terrestrial broadcasters and Naver. With the establishment of the local OTT alliance Tving-Wave merger corporation looming next year, there are interpretations that Netflix is aggressively expanding its influence on domestic platforms.
On the 30th, industry sources revealed that Netflix recently signed a strategic partnership with SBS to provide programs for domestic users, including drama, entertainment, and educational content. This starts in January next year. Popular entertainment shows like "Running Man" and "I Want to Know That," as well as hit dramas like "Penthouse," are included in the offering. Some of SBS’s new dramas in the second half of next year will be selectively released globally at the same time.
It is interpreted that SBS can achieve "global content" while Netflix, wary of Korean OTTs, is also able to acquire a wide range of content, resulting in a win-win partnership. Thanks to Netflix's investment, the number of dramas produced by SBS, which has fallen to fewer than 10 annually, is expected to increase to at least 13 starting next year.
Since the 26th of last month, Netflix began offering its ad-supported standard plan (5,500 won per month) for free to Naver Plus membership users. Naver, which is set to end its membership partnership with Tving on March 1 next year, has partnered with Netflix instead.
Experts indicate that Netflix, which is experiencing stagnation in subscriber growth, is lowering entry barriers through its ad subscription plan and creating reasons for regular access through various external partnerships.
Lee Seong-min, a professor in the Department of Media and Visual Arts at Korea National Open University, analyzed that "by collaborating with Naver, Netflix is lowering expenses and filling the reason for continuous access through terrestrial content. If this continues, Netflix could transform its influence from a subscription platform focusing on large-scale content to a platform where video consumption can be enjoyed regularly, similar to YouTube."
Such movements can also be detected at Disney Plus, which is poised to release major productions next year. Since the 22nd, it has partnered with MBC to broadcast its original content "Moving" on terrestrial television. "Moving" is one of Disney Plus's biggest hits.
The three major terrestrial broadcasters partnering with various OTT platforms like Netflix and Disney Plus is expected to strike a severe blow to Wave, which has maintained around 4 million monthly active users (MAU) by distributing those contents domestically. The three major broadcasters are also significant shareholders of Wave. Instead of competing with OTT platforms like Netflix, they have chosen to increase their content influence, which may heighten their reliance on Netflix.
The industry is paying attention to how this atmosphere will affect the Tving-Wave merger corporation expected to launch next year. Currently, Tving continues to compete with Netflix by starting to offer mobile-optimized "shorts" services and broadcasting professional baseball games. With the merger effect added, it will be able to stably secure most of Wave's terrestrial content.
An anonymous media industry expert noted, "Just because two platforms merge doesn't mean the user base doubles," adding, "As content businesses, including broadcasting companies, gain more choices in aspects such as global distribution and scalability, a fierce competition among platforms is expected to unfold next year."
According to mobile index data from the data platform company AIGAWORKS, as of last November, Netflix continues to lead with 11.6 million MAU. Tving follows with 7.3 million, Coupang Play with 6.3 million, and Wave with 4.25 million. Disney Plus has around 2.6 million.