Paramount+ Teams Up with TVING, Movie Users Double... HBO Also Partners with Wavve

Global OTT Companies Strengthen Partnerships with Native Korean Firms

[Asia Economy Reporter Minyoung Cha] Global online video service (OTT) companies that have chosen to enter the Korean market indirectly are achieving results such as an increase in subscribers through partnerships with native OTTs. To compete against Netflix and Disney+, they are strengthening their cohesion by joining hands with K-content, expanding from production to the supply of original works.

According to TVING on the 22nd, the number of users watching movie content in the 4th week of June, right after the opening of the ‘Paramount+’ brand section, more than doubled compared to the same period last month. The proportion of Paramount+ movies viewed among all movie content is 50%. The Paramount+ original drama series ‘Halo,’ based on the game of the same name, attracted male subscribers. The proportion of male paid subscribers contributed by Halo reached 79%. In the OTT market, where the proportion of female subscribers usually exceeds 50%, an increase in the number of male subscribers is interpreted as a significant indicator. OTT companies’ massive investment in sports broadcasting programs such as soccer and baseball is for a similar purpose.

The number of active users of TVING also increased. According to the big data analysis platform Mobile Index, TVING’s monthly active users (MAU) exceeded 4 million in June, an increase of 27.6% compared to the previous year. This is about 300,000 more than in May (3.81 million). This growth rate is higher compared to Netflix (9.5%) and Wavve (-8.6%) during the same period. A Paramount official said, "Through a strategic partnership with TVING, visible results such as customer base expansion are continuing," adding, "The first joint investment project between the two companies, director Lee Joon-ik’s ‘Yonder,’ is also scheduled for release in the second half of the year, so synergy is expected to increase."

HBO, known for the global hit series ‘Game of Thrones,’ is also expected to follow a similar path. HBO, which has been supplying exclusive content through Wavve for about a year since July last year, is currently discussing plans to supply a vast amount of content including ‘HBO Max’ original content through contract renewal. Earlier this year, there were expectations that HBO Max would directly enter Korea, but the direction shifted toward strengthening the partnership with Wavve in Korea. A Wavve official said, "We are discussing plans to expand content supply including HBO Max originals, and the method of provision will be decided later."

The market analyzes that this aims to achieve market settlement effects through alliances with native OTTs in the fiercely competitive Korean OTT market. An OTT industry official said, "Global OTTs have likely learned from the cases of Netflix and Disney+ that K-content is the key to early success in entering the Korean market," adding, "Since it is difficult for global OTTs to secure K-content from the start, more diverse strategies for entering Korea will be attempted in the future."