Korean streamer TVING to acquire rival Seezn to better compete with Netflix and Disney+

Korean streamer TVING to acquire rival Seezn to better compete with Netflix and Disney+

South Korea’s two main domestic streaming services, TVING and Seezn, have revealed plans to merge to create a single platform better equipped to take on global rivals like Netflix, Amazon Prime Video and Disney+.

Korean entertainment powerhouse CJ ENM, which holds a majority stake in TVING, confirmed the merger via a regulatory document, indicating that its broadcast subsidiary will absorb Seezn. The deal represents CJ ENM’s latest strategic move to strengthen its position in the Korean local entertainment ecosystem and become a more competitive global player.

The Seoul-based company bought a controlling stake in Hollywood studio Endeavor Content late last year for $775 million. A recent partnership with Paramount saw the launch of Paramount+ on TVING in June as both companies look to compete more broadly with established broadcasting giants.

Seezn is controlled by KT Studio Genie, the content production arm of telecom operator KT Corp. Studio Genie said in a statement that the agreement was reached “to strengthen the competitiveness of the over-the-top (OTT) platform in the national content and media industry. and accelerate the growth of K content.”

No additional financial terms were disclosed.

TVING CEO Yang Ji-eul said the company aspires to become the best Korean content platform in the world “using the content production infrastructure and communication technologies of both companies”.

“As competition in the market intensifies, experts say local players must grow to compete with foreign platforms,” cultural critic Ha Jae-geun said in a statement to local news service Yonhap. TVING appears to be taking action considering its recent moves to merge with Seezn and partner with Paramount+.

Subscriber ratings in Korea tend to vary, but the most reliable ratings put Netflix at the top. As of the end of 2021, regional research group Media Partners Asia said there were a total of 14.1 million premium subscription video subscribers in Korea, with Netflix accounting for 33%, or 4.7 million; the local platform Wavve takes 19% (2.68 million); and 18 percent of TVING (2.53 million). Disney+ is also believed to be making headway with other smaller local operators and the recently launched Apple TV+ (which is smaller in Korea than elsewhere thanks to Samsung’s local dominance).

TVING’s growing scale and trust may be the biggest challenge so far for Netflix, which has built an international reputation as a destination for the bank’s Korean content. After the worldwide success squid gameNetflix said in January that it would release 25 Korean originals this year alone, easily surpassing the $500 million spent on Korean content in 2021.

CJ ENM has been an integral part of Netflix’s early traction in the Korean content ecosystem, thanks to a 2019 partnership the streamer signed with CJ Studio Dragon’s K-drama production company. The arrangement brought successful dramatic titles such as crash landing on you s It’s normal if you don’t feel well. Netflix global subscribers. The term of the partnership ends this year.

Taking a page from Hollywood studios’ recent playbook, CJ ENM seems increasingly determined to scale his own platform and competitive position. In April, the group announced the opening of their third television production studio, CJ ENM Studios, which will specialize in producing Korean original dramas. CJ’s other recent acquisitions include deals for some of the country’s top production lines, including Moho Film, the label founded by Park Chan-wook, winner of the Best Director award at the 2022 Cannes Film Festival; and JK Film, the company of filmmaker JK Youn, best known for national blockbusters such as the 2009 tide.

Source: Hollywood Reporter

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