KakaoTV Hits Jackpot with Lee Hyori, Will It Become the OTT Leader?

[Asia Economy Reporter Buaeri] It has been a month since Kakao officially entered the online video service (OTT) market. In the domestic OTT market dominated by U.S. companies like Netflix, KakaoTV is showing rapid growth, drawing attention as to whether it can become the 'catalyst' in the domestic market.

KakaoTV Competes Through Mobile

As of the 4th, KakaoTV's subscriber count has surpassed 3.09 million. The cumulative views of original content released by KakaoTV have already exceeded 30 million.

Kakao is particularly focusing on being 'Mobile Oriented.' It targeted users by leveraging the advantages of mobile platforms. The biggest strength is that videos can be watched through the #KakaoTV tab within the national messenger 'KakaoTalk.' KakaoTalk has 52 million global users.

Additionally, KakaoTV offers 'vertical' videos optimized for mobile. KakaoTV has chosen a differentiation strategy from existing OTT services that feature movies and dramas over an hour long. It mainly provides short content of 10 to 20 minutes. This is because users enjoying content on mobile want a 'fast-paced, quick rhythm.'

Shin Jong-su, Head of Digital Content Business Division at Kakao M, emphasized, "We will present original content that is not just watchable on mobile, but more enjoyable because it is viewed on mobile."

'Original Content' as a Weapon

Another weapon of KakaoTV is its original content. Kakao has invested years in producing its own content. Since 2018, Kakao has expanded its scope for the content business. Its subsidiary Kakao M, launched in 2018, has acquired four major music labels including Starship Entertainment, seven actor management companies including BH Entertainment, three drama production companies including Mega Monster, two film production companies including Sanai Pictures, and performance production company Show Note. The 7,000 intellectual properties (IPs) accumulated through KakaoPage and Daum Webtoon also serve as a foundation for future original content.

These efforts are already bearing fruit. KakaoTV's releases such as 'Face ID,' which tells the story of singer Lee Hyori, and the drama 'Love Revolution' are very popular. For example, episode 2 of 'Face ID,' which revealed the reason Lee Hyori quit Instagram, recorded 5.26 million views, becoming a major topic.

KakaoTV plans to release additional content within the year. Head Shin stated, "This year, we will present a total of 25 titles including 6 dramas and 19 variety shows, with about 350 episodes as KakaoTV original content."

Experts believe that KakaoTV's ability to produce original content will determine its success in the OTT market. Professor Kim Hyun-kyung of Seoul National University of Science and Technology said, "The reason Netflix succeeded was its capital power to produce original content directly," adding, "To become a true winner in the OTT market, good content is important, but the ability to produce in-house is crucial."