Domestic OTT Lost 'Corona Boom' to Netflix: "What Is the Strategy for the Second Half of the Year..."

Wave·Watcha New Survival Strategy
Online Presentation at BCWW 2020 Hosted by Korea Creative Content Agency

Cho Young-shin, Head of Growth Strategy Group at SK Broadband (left), Lee Hee-joo, Head of Policy Planning Office at Wavve (center), and Park Tae-hoon, CEO of Watcha, are discussing "The Competitive Landscape of the OTT Market and Challenges for Domestic Operators" during the online session of the International Broadcasting and Video Market (BCWW 2020) hosted by the Korea Creative Content Agency.
[Photo by Korea Creative Content Agency]

[Asia Economy Reporter Kim Heung-soon] Due to restrictions on outdoor activities caused by the COVID-19 pandemic, Over-The-Top (OTT) video services enjoyed a boom in the first half of this year. Global OTT provider Netflix greatly benefited from this effect. Domestic major OTT platforms such as Wavve and Watcha are expecting results through content enhancement and overseas expansion strategies in the second half of the year to make up for the market gap caused by Netflix's dominance.

On the 7th, Wavve and Watcha announced these plans during an online session titled "Competitive Landscape of the OTT Market and Challenges for Domestic Operators," held on the first day of the International Broadcasting and Video Market (BCWW 2020) organized by the Korea Creative Content Agency.

Strengthening Original and Imported Content

Lee Hee-joo, Head of Policy Planning at Wavve, said, "Wavve has prepared original content investments and scheduled popular overseas mini-series such as 'Normal People' and 'Gangs of London' (both from the UK) for the second half of the year," adding, "Because of this, subscribers and viewing time have been increasing since the second half." Park Tae-hoon, CEO of Watcha, also stated, "We completed investment attraction in July, so marketing was insufficient in the first half," and "In the second half, Watcha plans to premiere highly talked-about content first, so we have high expectations for this."

Amid the spread of COVID-19 and movement restrictions in various countries, the global OTT market showed remarkable growth in the first half. According to data from the UK broadcasting and telecommunications regulator Ofcom, presented by Ed Waller, editor of UK media specialist and research firm C21Media, the average daily OTT viewing time of British people in April, when movement restrictions peaked, was 71 minutes, nearly double the 34 minutes during the same period last year.

OTT accessibility also increased among middle-aged and older adults who traditionally watched more television. It was found that 32% of those aged 55-64 and 15% of those aged 65 and over watched OTT, up from 25% and 12% respectively the previous year. According to Deloitte, the proportion of American baby boomers watching OTT also rose from 54% before COVID-19 to 69% this year.

Improving User Environment and Overseas Expansion

Domestic OTT platforms are also monitoring this trend and attempting to target subscribers. Lee said, "Considering that the age range of OTT users is increasing, we launched 'Wavve Classic,' which has rekindled interest in past popular variety shows and dramas," adding, "In a situation where content production such as dramas is delayed due to COVID-19, we can reconsider the potential of such classic content." Wavve plans to significantly revamp its user interface (UI) and user experience (UX) by the end of this month, its first anniversary, and strengthen services such as personalization, recommendations, and search.

Watcha plans to officially launch its service in Japan in mid-June and accelerate its overseas expansion. CEO Park said, "After entering Japan, we plan to expand into Southeast Asian markets one by one starting next year," and "As an independent OTT, Watcha has its own strengths in joint ventures with overseas companies."

Meanwhile, BCWW, Asia's largest broadcasting and video market, is being held online for the first time in 20 years considering the COVID-19 pandemic situation, running until the 11th.

The event consists of the 'BCWW Online Market,' which includes an online exhibition hall where domestic and international broadcasting and video companies' content can be viewed at a glance and an online video business consultation program; the 'BCWW Conference,' which explores global broadcasting and video industry trends and future prospects; and various pitching sessions, showcases, creator talk concerts, and new media content awards.

On the 8th, Marty Adelstein, executive producer of the Netflix original series 'Snowpiercer' remake, will give a special lecture titled "The Arrival of the Asian Broadcasting Content Renaissance in the New Normal Era." All related events and detailed information can be found on the official BCWW 2020 website.

This content was produced with the assistance of AI translation services.