The First Ever Tokyo Olympics Without Spectators... Opportunities to Secure Diverse Viewers
"Concerns That Actual Benefits May Not Match the Huge Broadcasting Rights Fees"
[Asia Economy Reporter Joselgina Cho] On the 23rd, with the opening of the '2020 Tokyo Olympics' held behind closed doors for the first time in history, domestic online video services (OTT) and portal platforms are also officially launching their 'online broadcasting battles.' Platforms that secured broadcasting rights are strategizing to use this Olympics as a stepping stone to attract subscribers, but concerns are mounting that the huge broadcasting rights fees may not yield practical benefits due to the less enthusiastic Olympic fever compared to previous years. These platforms are exploring ways to boost the enthusiasm of so-called 'home cheering squads' by enabling interactive communication in addition to live broadcasts and replays of the games.
◇Watching the Olympics through Online Broadcasts
In addition to terrestrial broadcasters, OTT and portal platforms that paid broadcasting rights fees to terrestrial broadcasters have joined as online broadcasters for the Tokyo Olympics. Besides Naver (Naver Sports), a leading domestic portal platform, OTT services Wave, AfreecaTV, and LG Uplus (U+ Mobile TV) have finalized securing online broadcasting rights. These platforms will take on the role of vividly delivering Olympic games from the opening ceremony at 8 p.m. on this day until August 8.
This Tokyo Olympics attracted early attention in the competition for online broadcasting rights because it is the first-ever event held without spectators. Since viewers can easily watch desired game footage anytime and anywhere through OTT and portals without having to watch TV live broadcasts regularly, high viewer response was expected. Especially for the OTT industry, which mainly provides content such as entertainment, dramas, and movies, there was a strong need to attract diverse viewers through this Olympics. The characteristic of sports content, where 'watching live' is important, was also seen as perfectly matching the strength of OTT platforms capable of real-time broadcasting.
However, the persistent COVID-19 pandemic dampened the Olympic fever. The reason why Kakao, Coupang Play, and KT Season, which had strongly expressed their intention to participate just a few months ago, gave up online broadcasting at the last minute is also due to this. The Tokyo Olympics, held amid a severe spread of COVID-19, is even being ignored within Japan. A representative from a company that gave up broadcasting said, "The atmosphere is distinctly different from the 2018 PyeongChang Winter Olympics," adding, "Considering the huge broadcasting rights fees and other costs, we judged that the practical benefits are not significant." OTTs affiliated with CJ ENM, Tving and Watcha, did not even attempt to secure broadcasting rights from the start.
◇"Raise the Fever" as a Stepping Stone to Attract Subscribers
The four platforms that have already secured online broadcasting rights are setting a strategy to use this Olympics as an opportunity to promote their platforms and as a stepping stone to acquire new subscribers. Ultimately, they believe there will be promotional and investment effects commensurate with the high broadcasting fees. Internally, there is also an expectation that the demand for staying at home may increase due to the recent severe spread of COVID-19.
Wave, a collaboration between SK Telecom and the three terrestrial broadcasters, has prepared a special page gathering related content such as live Olympic broadcasts, replays, sports entertainment, dramas, and documentaries. This is an event leveraging the diverse library, a strength of OTT. LG Uplus is consolidating seven real-time channels where games can be watched on U+ Mobile TV and is also conducting customer participation events such as gold giveaways. LG Uplus explained, "Anyone can watch real-time game broadcasts and highlight videos by simply downloading U+ Mobile TV, regardless of their telecom carrier."
In particular, these platforms are focusing on services and events that can raise the enthusiasm of home cheering squads. Naver has prepared cheering spaces for each athlete and provides a Live Talk service where users can communicate while watching games in real time. Depending on participation, Naver Pay points and other rewards will be given. AfreecaTV, which has secured Olympic broadcasting rights for three consecutive times, is promoting a 'biased broadcast' corner utilizing the strengths of its one-person media platform.
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