The 2nd 'Global OTT Festival' Held
Investment Pitching and Original IP Promotion
The Boundary Between OTT and Theatrical Films Breaks Down
Artificial intelligence (AI) technology is being actively introduced in the online video service (OTT) market to save time and costs. Additionally, the launch of various bundled products spanning telecommunications, e-commerce, and finance is another noteworthy trend.
On the 5th, the 29th Busan International Film Festival (BIFF) took place at the Busan Cinema Center in Haeundae-gu, Busan, where citizens enjoyed the film festival. [Image source=Yonhap News]
"Investing in Our Companies" - A Look at Active AI Utilization
The Ministry of Science and ICT and the National IT Industry Promotion Agency (NIPA) held a private 'Investment Attraction Showcase' over two days on the 5th and 6th at The Bay 101 in Haeundae-gu, Busan.
This event was part of the second 'International OTT Festival' held this year, designed to showcase the strength of K-content in the OTT market and provide opportunities to meet business partners.
On the first day, 17 content production companies participated, and on the second day, 11 media tech companies including Inshorts, Forby4, and Dexter Studio conducted IR pitching and one-on-one business meetings with domestic and international OTT platforms and investors. The list of investors included over 20 companies such as Amazon Prime, Tencent Korea, Alibaba, Rakuten Viki, and LG Uplus.
Looking at the media tech companies participating in the second event, Cubeberry showcased technology that converts photos into webtoons and enables easy, affordable, and fast animation production.
Cubeberry expressed its ambition to lower the entry barriers for creators and create a cost-effective animation production market by applying AI technology to the labor-intensive animation industry, which currently relies heavily on manual work.
Media tech companies that restore old footage created decades ago into Full HD or 4K high-definition quality also pitched. As consumer demand for high-definition content grows, companies that can quickly and easily enhance and restore image quality using a single AI model attracted attention.
Kang Dohyun, the 2nd Vice Minister of the Ministry of Science and ICT (4th from the left in the front row), is taking a commemorative photo with Lee Joonseung, the Deputy Mayor of Busan, and representatives of OTT companies at the opening ceremony of the "2nd International OTT Festival" held on the 4th at Paradise Hotel in Haeundae-gu, Busan.
"Bundled Products to Reduce Subscription Burden Are Increasing"
As OTT's influence on the public's daily life and the media industry grows, the market size has gradually expanded. However, growth has slowed since the COVID-19 pandemic, leading to an increase in attempts to launch various bundled products.
The domestic OTT market size is expected to grow from 5.6 trillion won last year to 7.2 trillion won by 2027. Moreover, more than half of the population (55.2%) uses paid OTT platforms, but the average number of paid OTT platforms subscribed to per person is only 1.8.
Although more than 50 OTT platforms worldwide compete fiercely, each subscriber typically pays for only one or two platforms monthly.
Accordingly, there is a growing demand for bundled products that consider viewers' financial situations. The three major telecom companies?SK Telecom, KT, and LG Uplus?are partnering with OTT platforms such as Netflix, Disney Plus, TVING, and Apple TV Plus to launch subscription plans.
Tony Gunason, Senior Analyst at global market research firm Omdia, said at the 'International OTT Summit' held at Paradise Hotel Busan on the 4th, "OTT is trending toward bundling not only with telecommunications but also with pay TV, consumer goods, and financial services."
Disney launched a bundled product combining its three platforms: Disney Plus, Hulu, and Max operated by Warner Bros. Discovery. This product allows users to access all three platforms for $16.99 per month (ad-supported plan), promoting up to a 34% reduction in subscription fees compared to subscribing separately.
Following major OTT platform mergers and acquisitions such as Warner Bros. and Discovery's merger in 2022 and Amazon's acquisition of MGM, the merger of TVING and Wave is also a hot topic.
Fierce Original IP Acquisition Battle... "Core to Competitiveness"
The determination to secure original intellectual property (IP) was also evident at this global OTT festival. Securing original IP is essential for sustainable growth in the OTT market.
Securing revenue sources based on original content is the core of competitiveness. The Korea Creative Content Agency stated in its global OTT trend analysis report, "As seen in the cases of global hits like Squid Game, The Glory, and Gil Boksoon, competitiveness in the global OTT market ultimately depends on how much original content is secured."
At this year's Busan International Film Festival, Netflix's original work "Juhn, Ran" was screened as the opening film, signaling that the boundary between OTT and theatrical films is effectively disappearing. TVING, the top domestic OTT platform, also operated a pop-up house in the bustling Haeundae area to promote its original content to citizens.
An OTT industry insider said, "Demand is increasing for enjoying high-quality content at low cost without constraints of time and space. If AI technology can solve production challenges, it will facilitate the global market entry of K-content with great growth potential."
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