[Initial Report] The Birth of a 'National Representative OTT' to Compete with Netflix Imminent

TVING·Wavve Merger Agreed by 3 Major Broadcasters
Breakthrough to Resolve Global OTT-Dependent IP
K-Content to Become a New Challenge and Turning Point

A major upheaval is expected in the domestic online video service (OTT) market. As merger discussions between TVING and Wavve rapidly progress, the emergence of a large-scale native platform to compete with Netflix is becoming visible. The merger talks, which had been delayed due to a complex shareholder structure, have recently gained momentum as the three major terrestrial broadcasters (KBS, MBC, SBS) agreed to the merger. Now, only the final decision from KT, the major shareholder of TVING, remains.

Kwangho Lee, Head of the Industrial IT Division Corporate Team

If TVING and Wavve succeed in merging, they are likely to establish themselves as the largest OTT platform in Korea. Combining the monthly active users (MAU) of the two platforms amounts to 12.14 million, surpassing Netflix’s 11.67 million. Even considering some overlapping users, the merger is expected to further strengthen the competitive landscape against Netflix.

According to Mobile Index, as of September 2024, TVING’s MAU reached 7.87 million, and Wavve’s was 4.27 million. This user scale is expected to serve as an important foundation for securing competitiveness not only in terms of user growth but also market dominance.

The powerful platform born from the merger is also highly likely to expand into overseas markets based on K-content. It is anticipated that a global user base can be secured through various content such as K-dramas, movies, and music, which are already attracting worldwide attention. The emergence of a “national representative OTT” will also have a positive impact on the growth of the domestic content industry.

Moreover, this merger could serve as a breakthrough to alleviate intellectual property (IP) infringement issues faced by domestic content producers. Currently, many Korean producers struggle to fully guarantee their creative rights within a structure dependent on global OTT platforms. However, if a native OTT gains strong influence, it will create an environment where domestic producers can protect the value of their creations and supply content more proactively. For example, when producing content in specific genres or themes, they can devise tailored strategies suited to the domestic market and supply creative works that meet consumer demands.

However, even if TVING and Wavve succeed in merging, challenges remain to be addressed. The foremost task is to harmoniously integrate the organizational cultures of the two companies. Minimizing conflicts that may arise when organizations with different operational methods and corporate cultures merge into one and establishing a smooth internal cooperation system is crucial. A careful approach is also needed during the service integration process. While maintaining the strengths of existing features and services offered by each platform, user experience (UX) must be improved. Offering reasonable pricing plans is also essential.

In conclusion, the merger of TVING and Wavve marks an important turning point in the domestic OTT market. The emergence of a large native platform to counter Netflix can provide significant benefits to the domestic content industry and users. If this merger is successfully completed, a new global challenge armed with K-content will begin. We look forward to a new era of K-content expanding its influence on the global stage through original content imbued with Korean sensibilities and differentiated platform strategies.