'Achilles' Heel' Content Business
Rechallenge with Original Drama
'Gupilsu Does Not Exist' Maintains 4th-6th Place on Netflix... Easing the Pressure
[Asia Economy Reporter Cha Min-young] KT, which has re-challenged the ‘painful finger’ content business, has officially set sail with an original drama. KT Studio Genie’s first original work, Gupilsu Does Not Exist, has eased the burden as it ranked high on the global online streaming service (OTT) Netflix. With a lineup of 24 works planned by 2024, the momentum continues.
KT Appears on Netflix
According to the content ranking site ‘FlixPatrol’ on the 27th, as of the 26th, Gupilsu Does Not Exist ranked 6th among Netflix’s Korean movies and TV shows. Since its release on Netflix on the 11th, it has consistently maintained a position between 4th and 6th. It ranked 2nd on KT’s own OTT Season and was also ranked high on the TV channel ENA. A KT official said, "To shed the conservative image of a telecommunications company, we presented a human comic drama (Gupilsu Does Not Exist) as our first drama, and it has received positive responses both inside and outside the company."
KT’s basic strategy is to first showcase original dramas produced by KT Studio Genie on its own TV channel ENA, OTT Season, and Olleh TV, but it also plans to simultaneously target global OTT channels. The second original drama, Extraordinary Attorney Woo, which is ready to launch, is the first work confirmed for a Netflix supply contract alongside ENA scheduling. The 2023 release Smash Girl is also under review for a global OTT supply contract. A KT official stated, "We are continuing discussions with overseas OTTs on various works."
KT plans to release about 10 original dramas this year and increase the number to 20 per year starting next year. Kang Guk-hyun, President of KT Customer Division, presented a business blueprint at last month’s ‘Group Media Day’ event, aiming for ‘50 trillion won in group media and content sales by 2025.’ Over the next three years, KT plans to invest 500 billion won to grow to 1.4 times the 2021 sales (36 trillion won).
Partnerships with Industry’s Top Partners
Following the content partnership with CJ ENM, KT recently signed a contract to acquire a 30% stake in Jumbo Film, a company formed by domestic directors and producers who produced dramas such as Wonder Woman. Kim Cheol-yeon, CEO of KT Studio Genie, said, "Starting this year, we will present well-made dramas from KT Studio Genie and expand distribution channels and production spectrum with various domestic and international partners."
ENA, responsible for variety shows as another pillar, continues to present new content along with variety show killer contents such as Steel Troops, I Am Solo, and Married Couple’s Story. For the popular variety show I Am Solo, spin-off versions like the tentative title I Am Couple are planned. A total of about 300 variety shows are also planned to be produced in-house.
The media content industry has also begun to re-evaluate KT. When CEO Koo Hyun-mo announced the media content business strategy centered on KT Studio Genie in March last year, there were concerns. This was because KT had previously established KT Media Hub at the end of 2012 under the will of former KT Chairman Lee Seok-chae and challenged the content business but ultimately failed.
An industry insider said, "The general consensus was that KT lacked competitiveness in the content business, but it seems to have achieved some initial results by steadily investing capital. However, since costs paid to writers and actors have increased, Netflix’s profitability is also declining, so an appropriate balance must be found."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
