"Netflix Is Too Dominant in Korea"... Warning from CEO of $700 Million Investment Firm [K-Content Strategy]

"When There Is Only One Buyer, Negotiating Power Weakens"
Connecting KOCCA and CAA, Investing in AI-Driven Companies
"If There Is Global Potential, We Will Invest"

Vania Shlogel, Founder and CEO of Atwater Capital

"One of the achievements I am most proud of over the past year is directly connecting the Korea Creative Content Agency with CAA. CAA is an organization that serves as an 'engine of content,' representing some of the world's top actors, directors, and producers, including Tom Cruise, Meryl Streep, and Steven Spielberg. Establishing a direct link with such a leading global entertainment and sports agency is highly significant."

This is what Vania Shlogel, Founder and CEO of Atwater Capital, said during an interview at 'U-KNOCK 2025 in USA,' held at the Loews Hollywood Hotel in Los Angeles on November 7 (local time). Atwater Capital, a Hollywood-based content investment firm managing approximately 500 million dollars (about 729 billion won) in assets, is expanding its investments in the Korean content market. Shlogel stated, "We planned this event together with the Korea Creative Content Agency, and also coordinated meetings with our portfolio company WIIP," adding, "I am confident that such practical business connections will continue."

Founded in January 2017, Atwater Capital is headquartered in Atwater Village, Los Angeles, and invests in media, entertainment, and sports. Its limited partners include Goldman Sachs and the global content investment firm KPR, and it collaborates with CAA, AMC, EQT, and KKR to discover and invest in content. Recently, it has also been actively partnering with Korean companies, with WIIP-a joint investment with JTBC-being a representative example. WIIP, an independent production company founded in 2018 by Paul Lee in the United States, has produced works such as HBO's "Mare of Easttown" and Apple TV+'s "Dickinson." In 2021, JTBC Studio acquired a majority stake in WIIP from CAA.

When asked about the investment criteria for Korean content companies, Shlogel answered, "To put it simply, global potential." She explained, "If a company is only targeting the Korean market, it makes more sense for Korean venture capital or private equity funds to invest. However, if intellectual property or technology can expand into the U.S. market, we can get involved and actually provide support." She added, "However, if there is a risk of the company disappearing due to artificial intelligence (AI), we cannot invest. We only invest when AI enhances the company, not when it replaces it."

The Korea Creative Content Agency renewed its business agreement with Atwater Capital on the 7th (local time).

As a concrete example, she cited the portfolio company Freepik. "It has transformed into an AI-based company, and its visual effects (VFX) have already been used in programs such as Amazon Prime's 'House of David.' Such cases are inevitably positive for investors." Freepik is a Spanish AI-based design platform company established in 2010. Its AI tools, including text-to-image and text-to-video generation, are used by more than 100 million users each month.

Shlogel identified storytelling as the strength of Korean content. She said, "Korea has a storyteller DNA. Because the history of written records is relatively short, oral storytelling is strong. This tradition has continued into modern narrative structures, which resonate well in Western markets." However, she was skeptical about the market structure. "The problem is demand-specifically, 'who is buying the content?'" she pointed out. "In the United States, there are various buyers such as HBO, Amazon Prime, Disney+, and Netflix, but in Korea, Netflix is overwhelmingly dominant. When there is only one buyer, that platform dictates the price and terms. This weakens the bargaining power of Korean production and rights companies." She emphasized, "I believe Korean content companies need to regain their strength."

For Korean companies seeking to enter the U.S. market, she stressed the importance of having local partners. Shlogel advised, "The U.S. market is large and complex, and relationships are extremely important. It is difficult for foreign companies to break in alone," adding, "That is why we formed a partnership with CAA. Korean companies must also establish such 'local networks.'"