Samsung and LG Become Gateways for K-Content Expansion... FAST Emerges as the Second OTT [Challenges Left by K-Pop Demon Hunters] ②

Samsung and LG Smart TVs Drive K-Content Global Expansion
FAST Services Emerge as "Second OTT" with Ad-Supported Free Streaming
Accessible on Over 600 Million Samsung and LG Devices Worldwide

Samsung and LG smart TVs, used by people all over the world, are playing a significant role as distribution channels for K-content. Riding the wave of K-content's global popularity, ad-supported free streaming (FAST) services-allowing users to enjoy a variety of content and services at no cost through smart TVs sold worldwide-are emerging as the "second online video service (OTT)."

According to market research firm Omdia's forecast for this year's global FAST market share released on August 29, Samsung's FAST service "Samsung TV Plus" holds a 13% share, ranking third after the U.S.-based FAST channels Roku (21%) and Pluto TV, operated by Paramount (21%). Omdia reports that 77% of Samsung TV Plus's revenue comes from the United States, followed by Brazil (7%), the United Kingdom (4%), Mexico (2%), and Canada (2%).

While FAST has a limited presence in the domestic market, it is experiencing rapid growth overseas, driven by high pay-TV fees and stagnant satisfaction with subscription-based OTT services. According to a Digital TV Research report, the global FAST market is expected to triple from $6 billion in 2022 to $18 billion in 2028. As of last year, Samsung TV Plus recorded 88 million monthly active users (MAU). As long as there is an internet connection, the service can be accessed on more than 600 million Samsung devices worldwide-including not only smart TVs via the Tizen operating system (OS), but also smartphones, laptops, and various home appliances. However, in South Korea, where the number of pay-TV subscribers such as Internet Protocol TV (IPTV) exceeded 36 million last year, Samsung TV Plus accounted for only 1% of its total revenue.

Choi Junheon, head of Samsung Electronics Group, emphasized, "When we first launched FAST, there was a bias that it was a free service only airing outdated dramas, variety shows, and unpopular movies, but now we have greatly improved the quality of the content." KT Studio Genie opened 12 new movie and drama channels on Samsung TV Plus this month, using it as a distribution channel for original IP. Samsung is also investing in creator content, signing exclusive contracts with popular YouTubers and other creators.

Marking its 30th anniversary this year, SM Entertainment partnered with Samsung last April to launch a K-pop dedicated channel, which now attracts an average of 200,000 viewers per day. To celebrate the launch, the globally live-streamed SMTOWN LA concert surpassed 10 million cumulative viewers. Lee Yeji, director at SM Entertainment, said, "We are now able to reach markets such as the United States, South America, and India more closely, where YouTube or TikTok alone had limits in terms of reach."

LG Electronics' smart TV FAST service "LG Channel" offers more than 4,000 channels across over 30 countries worldwide. K-content is distributed on LG Channel through offerings such as SLL's "Romcom K-Drama" and the Korean food specialty channel "New K-Food." In addition, LG is expanding its services to include the ThinQ application for controlling home appliances, as well as smart monitors and LG Gram laptops. Notably, the company plans to extend its in-vehicle LG Channel service-already launched in Hyundai and Kia vehicles for the global market-to vehicles from other manufacturers soon.

Kim Sungchul, a professor at Korea University and chair of the Global K-FAST Alliance, stated, "The strategy is to distribute K-content worldwide by integrating it into Korea's best-made smartphones, TVs, and cars," adding, "We need to mobilize all types of devices, solutions, artificial intelligence (AI), and data to provide customized K-content to overseas customers." The Ministry of Science and ICT plans to invest 8 billion won in supplementary funding to connect companies with AI dubbing technology and content providers, with the goal of broadcasting a total of over 1,400 hours of content through FAST channels in more than 20 countries.