KT will pursue a film production business utilizing artificial intelligence (AI) technology. Recently, the company established a new media division to oversee media and content affiliates within the group, appointing an AI expert as its head for the first time. KT, which is transitioning from a telecommunications company to an AI company, is expected to integrate AI transformation across its media business.
According to industry sources on the 12th, KT is pursuing a new business for film production utilizing AI technology. A source familiar with KT noted, “By establishing a new media division through organizational restructuring at the end of last month, KT is driving new media businesses leveraging AI,” adding, “Practical discussions on scenario reviews and budgeting for film production have been completed with renowned domestic directors for AI film production.”
KT’s new film production business is expected to start with the AI creating only the film backdrop. Real filmmakers will direct, and real people will act. This differs from AI-generated content where generative AI autonomously incorporates virtual humans and backgrounds throughout the entire production. By producing films with AI technology, the costs associated with setting up film sets or scouting locations, as well as shooting times, can be reduced to one-third of traditional film production expenses. This figure compares the costs KT internally estimated for AI film production with those incurred using standard methods.
An industry insider said, “Since the pandemic, the number of people visiting theaters has sharply declined, and investment in film production has also decreased. In this situation, AI technology can reduce production expenses and play a savior role for the Korean film industry,” adding, “This reflects KT’s new business strategy of pioneering a new media market through support for AI-based content production.” According to the Korean Film Council, the revenue for Korean films in 2023 is expected to be 598.4 billion won, a 69% drop from 1.913 trillion won in 2019 before the pandemic.
The newly established media division encompasses ▲ Content planning and production (KT Studio Genie) ▲ Content planning and channel operation (Sky TV) ▲ Content platforms (KT Genie TV, KT Skylife, HCN, Altimedia) ▲ OTT (Genie Music) ▲ Content distribution and advertising (KT Alpha, Nasmedia, Play D, KT is) ▲ Original IP (Storywiz, Millie's Library), overseeing KT Group's media and content affiliates. Kim Chae-hee, appointed as the head of the media division, is an AI expert who previously served as the head of AI business unit and AI and big data business division at KT.
KT is expected to accelerate the AX (AI transformation) of its overall media business through the new AI film production initiative. In April, KT held the 'KT Group Media Day' and announced its intention to lead the AX across the media business based on its AI technology tailored for media, focusing on content investment, production, marketing, and monitoring.