K-Content That Brings Back Gen Z Who Left Television [K-Buddha①]

Legacy Media Ignored by Generation Z... Television Crisis
Canal+ Achieves Rebound Through Close Cooperation with Other Companies
K-Content as a Strong Attraction "We Want to Expand Supply"

Television channels are in crisis. They continue to lose viewers to smartphones and OTT platforms. According to the Korea Information Society Development Institute, the average daily television viewing time per person last year was 138 minutes and 1 second, a decrease of 24 minutes compared to 2019. The decline was observed across all age groups except those in their 70s. In particular, people in their 20s and 30s reduced their viewing time by 62.5 minutes and 53.5 minutes, respectively.

The situation in France is no different. According to the media research organization M?diam?trie, the average daily television viewing time per person has decreased by 5 to 7 minutes annually over the past decade. Among the 8 million people aged 15 to 24, known as Generation Z, only 54% watched television daily as of last January. This is 20% lower than the overall average of 74%. Kim Dowon, who is pursuing a master's degree in business administration in Paris's 15th arrondissement, said, "Local young people prefer OTT platforms or YouTube over television channels."

Generation Z rarely watches broadcast channels even when they turn on the television. The overall average viewership rating of TF1, the most popular channel locally, has fallen below 20%. This is the first time since its privatization in 1987 that it recorded ratings in the 10% range. Despite securing broadcasting rights for many sports events, it failed to rebound.

Legacy media, sensing the crisis, are exploring solutions from multiple angles. Most attempts so far have ended in failure. A representative example is 'Salto,' jointly established by the public broadcaster T?l?vision Group (operating 4 channels), TF1 Group (operating 9 channels), and M6 Group (operating 14 channels). Like Korea's Wavve, it was an OTT platform branded as 'made in France.' It competed against Netflix with abundant original content but closed down last year after three years.

The cause of failure was the inability to secure subscribers. Apart from offering content from mainstream broadcasters in one place, it had no other advantages. It lacked eye-catching original content, and cooperation among operators was not closely coordinated. According to data on the OTT market compiled by the French Ministry of Culture, the market share in June 2022 was only 1.3%. Netflix held an overwhelming lead with 60.1%.

Among domestic OTT platforms, Canal+, which evolved from France's first paid cable channel to OTT, led with 9.9%. Its survival secret lies in expanding original content production and close collaboration with other companies. Kim Moonju, head of the France Business Center at the Korea Creative Content Agency, said, "Like the content collaboration between TVING and Paramount, Canal+ has established strong partnerships with Disney+, beIN Sports, Apple TV+, and others," adding, "They are working hard to attract Generation Z with popular content."

One of the powerful driving forces is K-content. It is so popular that a separate section is even prepared in the start menu. A representative success story is Apple TV+'s 'Pachinko,' which began airing on July 25. The drama is adapted from the novel of the same name by author Min Jin Lee and stars Korean actors such as Youn Yuh-jung, Lee Min-ho, and Kim Min-ah.

The local weekly magazine T?l? 7 Jours praised it as "a romantic and aesthetic historical fresco (a painting technique involving applying mortar mixed with sand on walls and coloring it while moist)" and said, "It is nothing short of a true masterpiece."

Other local broadcasters and production companies are also very interested in K-content. They all see it as a driving force to attract Generation Z. In fact, at MIPTV, a local video content market held in April, Korean companies such as CJ ENM, KBS Media, and SBS Contents Hub conducted 192 export consultations, achieving sales of 72.95 million USD (approximately 99.795 billion KRW). A representative from the Korea Creative Content Agency explained, "Many contents, including CJ ENM's 'LTNS' and MBC's 'University Sports Festival: Youth Athlete Village,' attracted buyers' attention."

At the 'Series Mania' drama showcase held locally in March, CJ ENM's 'Pyramid Game' attracted significant attention. At the time, Ann Marsda, Vice President of Paramount Global Content Distribution, said, "Its cultural universality resonated with audiences," and expressed confidence that it would become popular not only in Korea but also among global fans. As he said, 'Pyramid Game' aired locally through Paramount+ starting in late May and topped the TV show global category.

Kim Moonju said, "Recently, Netflix's 'Hierarchy' and 'The Eight Show,' as well as Amazon Prime's 'Ijae, Soon to Die' and 'Marry My Husband,' ranked high in the French OTT viewing rankings," adding, "The main viewers were young generations, including Generation Z." He further explained, "Since the composition and content of most local broadcast programs are stuck in the past, interest in K-content is expected to grow even more."

Marilise Auge, Digital Director of Canal+, whom we met at the international broadcasting and video market (BCWW), also said, "Many K-contents are well received in France," and expressed a desire to "gradually expand the supply." In fact, Canal+ increased its stake in Viu, owned by Hong Kong telecom company PCCW, from 26.1% to 36.8% in July. Viu is an OTT platform that has attracted a large number of young subscribers in Southeast Asia by leveraging K-content. It broadcasts terrestrial and comprehensive programming network dramas shortly after their first airing in Korea, generating significant revenue in Japan, Taiwan, Vietnam, and other countries. In particular, 'The Youngest Son of a Chaebol Family' is evaluated to have had a considerable impact on subscriber growth.

The broadcasting industry expects Canal+'s move to lead to increased investment in K-content. One industry insider explained, "It is a strategy to establish a future foothold in the Asian market, where regulations are less strict, amid the expansion of American media companies like Netflix." He added, "There is potential to transfer the value of K-content to Europe, which could further increase domestic content production demand." Another insider said, "It is a positive development for investment in K-content," but also expressed concern that "dependence on overseas OTT platforms may increase."