IPTV Integrated Brand '!Pick' Launches... "Securing Exclusive Content"

Joint Investment of 300 Billion KRW, Strategic Content Co-Procurement
Original Content Investment Like OTT

[Asia Economy Reporter Lim Hye-sun] The three Internet TV (IPTV) providers?KT, SK Broadband, and LG Uplus?are launching an integrated brand for jointly procured content called '!PICK' on the 21st. This is a follow-up measure to the joint investment of approximately 300 billion KRW made by the three IPTV companies in July to jointly procure content.

The name '!PICK', chosen through an internal contest, signifies the careful selection of the best content for 30 million users. The three companies will also collaborate on marketing efforts. They plan to instill in users the perception that the content is exclusively available on IPTV. The IPTV Joint Procurement Operating Committee intends to actively secure exclusive (original) content such as movies and dramas, as well as intellectual property (IP) through the joint brand. The first procured content was director Choi Dong-hoon's film 'Alien+ing I'. Although it performed somewhat poorly domestically, it received favorable reviews overseas. It was not released on overseas OTT platforms like Netflix but was supplied only to the three IPTV providers and some domestic OTT services.

The alliance formed by the three IPTV providers, who have been fierce competitors, aims to secure competitiveness in the content market, which is being reorganized around online video services (OTT). An IPTV official explained, "Since entering the era of 30 million paid broadcasting subscribers in 2017, market growth has slowed. As OTT platforms have made large-scale investments in exclusive content, IPTV has fallen behind in the competition to hold content, resulting in decreased profits."

The domestic IPTV market has seen subscriber growth over several years, but the net increase in subscribers has slowed since last year. As of December last year, the cumulative number of households was 19.69 million, with a net increase of only 370,000 households compared to the end of the first half of the year?about half the increase seen in the previous first half. VOD sales are also declining. According to the Korea Communications Commission, VOD sales decreased from 815.1 billion KRW in 2018 to 625.8 billion KRW last year. Meanwhile, the OTT market is growing. According to the Korea Foundation for International Cultural Exchange, the domestic OTT market, which was approximately 993.5 billion KRW in 2020, is expected to grow to 1.9104 trillion KRW by 2025.

The three IPTV providers are also focusing on content development through coexistence with OTT platforms. LG Uplus revamped its IPTV service 'U+tv' to allow users to easily enjoy OTT content such as Netflix and Disney Plus. KT is expanding its presence in the content market through collaborations with CJ ENM and others. The IPTV Broadcasting Association stated, "Through win-win cooperation, we will expand viewing rights and strengthen collaboration with domestic content producers and investors."