K-Content News

 

What impact will Tving-Wavve merger have on
Korea's streaming industry?

  Also on the local entertainment front.
Two Korean streaming platforms have penned a memorandum of understanding to consolidate their entities to better compete with global streaming giants.
Our culture correspondent Song Yoo-jin has more on these efforts.

Are we about to witness the birth of Korea's largest streaming service?
Local streaming giants Tving and Wavve have signed a Memorandum of Understanding for a merger.
CJENM's Tving is the second largest domestic streaming platform with 5-point-1-million monthly active users.
SK Square's Wavve is fourth with 4-point-23-million.
When combined, their total of more than 9-million expected users would make them the leading domestic streaming service provider.

The two rivals coming together was not a surprise.
This marks the second merger between local streaming services, following Tving's merger with KT's Seezn last December.
Industry experts view this as a strategic move for survival.

"With the rise of numerous streaming service brands, not only Netflix but also Disney Plus, there has been constant discussion about the crisis facing domestic services. The merger between Tving and Wavve is seen as a way to secure a competitive edge against industry leader Netflix."

In terms of numbers, the merged platform will fall short of Netflix's 11-point-3 million monthly active users.
However, this could change in the long run.

"This is exciting news for consumers because they can access a diverse range of content with a single subscription fee. Wavve has programs on terrestrial TV channels, while Tving has been building its lineup with entertainment shows and dramas on TVN. On top of that, each platform has its partnerships with streaming services abroad."

This move could also realize the long-envisioned dream of local streaming services: global expansion. Both companies already have the experience and know-how, with CJENM acquiring global production studio Endeavor Content, and Wavve America acquiring U.S.-based video streaming platform Kocowa.

"In the case of Netflix, subscriber numbers tend to peak when it releases an original series.
This indicates that without compelling original content, a streaming service won't be able to compete globally.
There's anticipation that through the merger, the combined investment capacity could increase, which could lead to more original content from the two platforms."

The two companies are expected to finalize a definitive agreement by the middle of next year, to conclude the merger process by the end of 2024.
Song Yoo-jin, Arirang News.