[In-Depth Review] The New World of Media: OTT Must Be Developed as a New Growth Industry

[Asia Economy Reporter Seungjin Lee] As the novel coronavirus disease (COVID-19) crisis continues, contactless and non-face-to-face lifestyles are creating a new world for media. OTT services, which allow viewers to watch movies and series from around the world at home, are now dominating living rooms worldwide. OTT can be viewed not only on TVs, PCs, and smartphones but also on any device. It can also be accessed through existing telecom operators or broadcasters.

There are no restrictions on time and space, and no antennas are needed. Moreover, unlike paid broadcasting businesses or terrestrial broadcasting businesses based on frequencies, OTT uses the internet network and can be viewed simply by installing an application. There is no need to go to the theater or watch regular TV programs or home shopping TV. No special approval or permission from the government is required for broadcasting.

Domestic OTT platforms include 'Wavve,' a joint platform by SK Telecom and the three terrestrial broadcasters, CJ ENM's 'TVING,' 'Seezn,' which has 5G channels, and Naver TV. Global OTT providers include Netflix, Disney+, and Apple TV. Netflix, which has penetrated Korean households, has over 167 million paid memberships in more than 190 countries. Disney+ and Apple TV will soon enter the Korean market as well. These global OTT providers will fill our imagination with their media content through their investment power and production and sales experience, emptying Korean consumers' wallets.

However, the opposite possibility is higher. If we can create content that resonates globally and provide it to global OTT providers, it will rather become an opportunity. OTT providers must have the ability to discover, plan, and edit content that can become a big hit, as well as financial capability and timing of investment, along with luck, to succeed.

If we can discover a second Director Bong, a second Psy, and BTS to continue the myths of K-pop and K-movies, OTT can become a new growth industry for us. New mega trends cannot be stopped by blocking them. We must develop capabilities through fair competition and share the global market through cooperation. Broadcasters should also discover and support various actors, singers, and even digital artificial stars.

The domestic broadcasting and entertainment ecosystem, monopolized by some celebrities and agencies, must be innovated. Broadcasters, agencies, large distributors, social networks, online platforms, mobile content ICT companies, game companies, and even video transmission technology companies should invest in OTT businesses through alliances. Investing equity in OTT businesses is essential to succeed in future business. OTT businesses can manage overseas viewers as subscribers in the global market, providing opportunities to secure both competitiveness and profitability.

Whether becoming an OTT provider themselves or a partner company, the important thing is not to fear investment and failure in OTT content. The government should also recognize the OTT business as a new growth industry and establish the necessary financial support system. At the same time, existing broadcasters should create a supportive environment where writers and PDs can demonstrate creativity by encouraging artistic quality rather than focusing solely on ratings, enabling content to be later accepted as OTT content.

Simultaneously, fair competition within the market rather than regulation should be ensured. To realize autonomous competition within the industry, an ecosystem that prioritizes and spreads developers' creativity and technologies must be established. In particular, the government needs to support the voluntary establishment of ethical and normative production standards to avoid sensationalism or violence in OTT content.

Support from self-regulatory organizations leading the integration of entertainment and appropriate quality in early OTT content through content creator identification is also urgently needed. The Korean people's temperament, which creates the myth of K-culture and is moved by it, is more than sufficient as a prerequisite to ignite success in the OTT business.

Professor Ikseong Kim, Dongduk Women's University · Honorary President of the Korea Distribution Science Association