[2022 Hot IT Companies⑦] TVING Rides the 'Line' to Target Taiwan and Japan... Leading the K-OTT Front

256% Increase in Paid Subscribers in One Year... Expected to Surpass 2 Million This Year
Full-Scale Entry into Overseas Markets Next Year... Aiming for IPO Within 2-3 Years

(From left) Yang Ji-eul, Lee Myung-han, Co-CEOs of TVING

[Asia Economy Reporter Gu Eun-mo] TVING will take the lead in the overseas expansion of domestic online video services (OTT) starting with Taiwan and Japan next year. Partnering with LINE, which has high recognition in the Asian region, TVING plans to increase subscribers by leveraging the recently strengthened competitiveness of original K-content. In addition, following the acquisition of content producer Endeavor Content, TVING is accelerating its push into the U.S., the world's largest content market, by forming a partnership with the comprehensive media group ViacomCBS.

"Beyond Korea, Overseas Expansion" Entry into Taiwan and Japan

"This year, we focused on domestic growth, and from next year, we will focus on global expansion. Starting with Taiwan and Japan, we will kick off our global expansion and plan to continue aggressive investments over the next 3 to 5 years," said Yang Ji-eul, co-CEO of TVING, clearly expressing the intention to enter overseas markets at the 'Digital Media Content Promotion Forum' on the 21st.

This year, TVING solidified its position as a leading domestic OTT by leveraging original content such as "Work Later, Drink Now" and "Transit Love." According to TVING, since its independent launch from CJ ENM in October last year, the number of paid subscribers as of the 18th has increased by 256% compared to immediately after the independent launch. Among these, from January to November, when original content releases began, nearly 50% of the paid subscribers who joined were attracted through original content. The number of paid subscribers, estimated to be around 700,000 at the end of last year, gained momentum after partnering with Naver Plus Membership in March this year and is expected to exceed 2 million this year.

TVING now aims to become a differentiated major OTT in overseas markets with Korean content beyond Korea. The initial target for next year is countries where LINE, a messenger service under Naver, is popular. LINE, operated by Line Plus, a subsidiary of Naver, is highly popular as the "national messenger" in Japan, Taiwan, Thailand, and other countries.

TVING plans to quickly secure subscribers centered on LINE users in the Asian market to expand global market recognition and imprint the TVING platform and K-content as a D2C (Direct to Consumer) service that directly provides content in key countries. Previously, TVING and LINE signed a memorandum of understanding for global cooperation and are concretizing business plans. TVING also aims for an initial public offering (IPO) within 2 to 3 years, leveraging the achievements of its overseas expansion.

Riding on Endeavor and Viacom to Enter the U.S. Market

The recent official acquisition of the U.S. production company Endeavor Content is also a factor raising expectations for TVING's advance into the global market. Endeavor Content, known for productions such as "La La Land" and "Call Me by Your Name," was acquired by TVING's parent company CJ ENM last month, including management rights, with about 80% of shares purchased for 920 billion KRW. The company valuation was estimated at about 1 trillion KRW.

With the acquisition of Endeavor Content, CJ ENM has secured stable distribution channels not only for production but also for global OTTs and channels. This establishes a structure that allows CJ ENM's intellectual property (IP) to be continuously introduced to global markets such as the U.S. As the path to producing and distributing high-quality original content expands, it is expected to contribute to strengthening TVING's competitiveness as it prepares to enter the global OTT market.

Earlier this month, TVING also signed a comprehensive partnership with the major U.S. media company ViacomCBS. ViacomCBS is a comprehensive media group owning CBS, Showtime, Paramount Pictures, Nickelodeon, MTV, BET, and more. The two companies agreed to cooperate in various ways to strengthen TVING's competitiveness. ViacomCBS will open a 'Paramount Plus Brand Zone' within TVING in the first half of next year to provide popular ViacomCBS content. ViacomCBS also decided to make a strategic investment in TVING, including equity investment and investment in the production of seven TVING original contents.