Sam-il PwC "K-Content Must Leap Forward by Strengthening Native Platforms and Going Global"

On the 14th, Samil PwC published the report "From K-Contents to G-Contents (Global Contents)," presenting strategic directions for the sustainable growth of the K-Contents industry.

According to the report, Korean dramas and films are gaining attention on global online video services (OTT) for their high cost-effectiveness, with continued investment and demand expected in the future. However, although the K-Contents industry experienced rapid growth during the COVID-19 pandemic, it has recently faced issues such as soaring production costs and deteriorating investment returns.

In response, Samil PwC emphasized the urgent need to improve profitability for the sustainable growth of K-Contents and their leap into mainstream global culture. To this end, they proposed securing competitive intellectual property (IP), producing high-quality content, and implementing efficient sales strategies and IP utilization. They also highlighted new platforms such as Free Ad-Supported Streaming TV (FAST). FAST is rapidly growing mainly in the United States and is expected to be a platform that can expand content exposure in the domestic market as well.

Additionally, the report suggested measures to strengthen content, including ▲expanding economies of scale between domestic and international investors and production companies ▲diversifying content revenue structures ▲creating production and management environments considering Environmental, Social, and Governance (ESG) factors. In particular, strengthening the competitiveness of native platforms and global expansion strategies through partnerships with overseas OTTs were emphasized.

Jin Byung-guk, Partner of the TAX division, pointed out that "(The government) needs to expand the scope of tax credits to content production and related industries and relax the credit requirements." Han Jong-yeop, Media Industry Leader at Samil PwC, stated, "The K-Contents industry must now focus all efforts on improving profitability," adding, "We need to consider sustainable growth strategies that reflect recent industrial changes such as ESG and the use of generative AI."