KT held a 'KT Group Media Talk' on the 16th at the Andaz Seoul Gangnam hotel in Gangnam-gu, Seoul, introducing the company's new media content business strategy. KT stated that through 'KT Media New Way,' it would incorporate artificial intelligence (AI) technology into the overall media content business and innovate the platform.
Key executives related to KT Group's media business attended the event, including Kim Chae-hee, head of the KT media division (executive director), Shin Jong-soo, head of KT media strategy (managing director), and Jeong Geun-wook, CEO of KT Studio Genie. Last year, KT established a new 'media division' to oversee the group's media business through organizational restructuring, strengthening related projects. This meeting was the first official event since the establishment of the media division.
Kim noted, 'Content and platforms have played a role in fostering a positive cycle to grow the industry within the media sector. Recently, the stagnation of the paid broadcasting market and the dominance of a few global over-the-top (OTT) services have rapidly reshaped the entire value chain of content production.' He added, 'In the long term, our content industry will shrink.'
He continued, 'KT has also produced original content,' but added, 'Under the current high-cost production structure, it is questionable whether we can continue to sustain our strategy.' Kim emphasized that in a situation where viewing time share is declining, it is essential to fundamentally change the modes of content production and investment, as well as the IPTV business approach.
◇ AI agent embedded in Genie TV… collaboration with MS
KT plans to operate its media content business with three pillars: ▲ AI platform ▲ AI content ▲ business model innovation.
First, KT will collaborate with Microsoft (MS) to gradually embed a media AI agent into its internet TV (IPTV) platform, 'Genie TV,' starting in the first half of the year. Subscribers to Genie TV will be able to explore and watch content based on a conversational large language model (LLM).
KT announced that it would build a collaborative model with external partners through the AI agent. The AI agent will be applied to Genie TV's shopping insight solution for home shopping businesses. Additionally, KT plans to expand the application of Genie TV's AI platform to its group companies.
◇ "Content is also created by AI"… establishment of AI studio lab
KT revealed that it would enhance production efficiency and quality by implementing AI technology throughout the entire content value chain. KT established the 'AI Studio Lab,' a specialized organization for media content AX (AI transformation), focusing on KT's media division and KT Studio Genie, as well as KT ENA.
The AI Studio Lab will apply AI technology to the entire content business process, including ▲ investment review (AI-based hit prediction assistant reviewer) ▲ planning (AI assistant writer, AI storyboard, etc.) ▲ production/editing (AI music, CG, editing, etc.) ▲ marketing/distribution (AI short form, subtitles, product placement, etc.).
The company also announced plans to develop KT Studio Genie, which is responsible for content production within the group, into a 'master of AI production and intellectual property (IP).'
Previously, Genie TV original content was exclusively available on Genie TV and KT ENA, but it plans to transition to simultaneous releases on OTT platforms such as Netflix and Tving in the future. Additionally, it aims to expand content formats while producing the movie 'New Recruit: The Movie,' based on the world of the 'New Recruit' series, and to attempt strategic collaborations for overseas production utilizing its IP.
◇ Targeting the FAST and short-form content market… aiming for global expansion
KT announced it would comprehensively reorganize its business model to overcome the growth limitations of the existing IPTV-based paid broadcasting market. It highlighted that it would actively introduce new business models such as FAST (free ad-supported streaming television) and short-form content.
The company plans to conduct pilot operations of the FAST service through Genie TV in the first half of the year and will consider global market entry based on the results. Content produced based on KT Studio Genie's IP will also be presented globally through FAST.
KT will also ramp up its entry into the short-form content market. KT plans to differentiate KT Studio Genie as a 'short-form specialized studio' and establish AI-based short-form production infrastructure. It is discussing about 20 joint productions with major platforms both domestically and internationally. Furthermore, it is reviewing structural changes to the IPTV business model, focusing on real-time channels and video-on-demand (VOD) in line with new media usage patterns.
Kim stated, 'With approximately 14 million media service customers and rich media business capabilities, the KT Group will lead the paradigm shift in the media industry based on AI through a strategy that drives customer changes.'