[Comprehensive] 100 Blockbusters by 2023... KT "Largest Investment Among Domestic Content Companies"

KT Studio Genie Press Conference on the 23rd
Revealing the DigiCo Control Tower Blueprint
All Presidents of Media and Content Affiliates Gathered

Coexistence with Production Companies Amid Global OTT Offensive
Becoming a 'Metaplatform' Beyond Platforms

KT CEO Koo Hyun-mo is presenting KT Group's media content business strategy on the 23rd at KT Square in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Cha Min-young] "Many people question the profitability of the content business, but we have concluded that the time has come to make money through content."

Gu Hyun-mo, CEO of KT, dressed in jeans instead of a suit, opened the media briefing at 10 a.m. on the 23rd at the KT Gwanghwamun West Building. The briefing was held to announce the launch of KT Studio Genie, the core of KT's media content strategy, and to introduce its blueprint. KT plans to invest several hundred billion won aiming to secure 100 major titles by the end of 2023.

The briefing was attended by presidents of KT Group's media affiliates. Along with KT Studio Genie's co-CEOs Yoon Yong-pil and Kim Cheol-yeon, CEO Gu Hyun-mo, Kang Hyun-guk, President of KT Customer Division, Jung Ki-ho, CEO of Nasmedia and KTH, Kim Cheol-soo, CEO of KT Skylife, Jeon Dae-jin, CEO of Storywiz, Jo Hoon, CEO of Genie Music, and executives from affiliated companies were present.

100 Major Titles... Bold Betting

KT Studio Genie will serve as the control tower leading the core strategy of the Gu Hyun-mo administration: the transformation into a digital platform company (Digico). Under Studio Genie's leadership, nine content affiliates will join forces to create a 'meta-platform' beyond just a platform. The goal is to establish a virtuous cycle structure of discovering original intellectual property (IP) → production → primary and secondary rights distribution → domestic and international rights distribution → reinvestment in IP.

Storywiz is responsible for discovering original IP, and KT Storywiz produces dramas, movies, and entertainment content. These are distributed in primary and secondary stages through SkyTV, Olleh TV, and Skylife. Subsequently, domestic and international rights distribution is carried out through OTT platforms such as KTH and Season.

Kang Guk-hyun, President of KT Customer Division, is making a presentation at the KT Media Content Business Strategy Press Conference held at KT Square, Gwanghwamun, Jongno-gu, Seoul, on the morning of the 23rd. Photo by Kang Jin-hyung aymsdream@

The current goal is to secure more than 1,000 original intellectual properties (IPs) and over 100 drama IPs by the end of 2023. The first work, already in preparation, is scheduled to be released in the third quarter of this year. About 30 original content titles will be produced, including tentpole (major blockbuster) dramas, which are a core competitive strength. An IP fund worth around 10 billion won has also secured about 80% of its funding.

Kang Guk-hyun, President of KT Customer Division, said, "Saying we will create 100 major titles means it is difficult to disclose the exact amount, but it will be the highest investment amount among domestic content operators as of the end of 2023." This implies an expected investment of at least several hundred billion won. Domestic OTT service Wave, a competitor of Season, has announced plans to invest 300 billion won by the end of 2023.

Pursuing an 'Open Ecosystem' Without Exclusivity

The biggest feature that distinguishes KT Studio Genie from other global OTT services is its open ecosystem. Even original content made with KT's original IP will not be exclusively supplied only to KT-affiliated platforms. Conversely, original IP will also be opened to other producers and partners to create a structure where content can be reproduced in the best possible way. KT plans to allocate a larger share of IP and revenue distribution to producers and creators compared to the existing creative ecosystem.

The symbiotic process with small production companies is summarized by the value called 'With KT.' This centers on 'connection' as a core value and involves a content cooperation structure based on openness, sharing, and nurturing. KT is promoting open-structured cooperation with about ten successful production companies and about ten small and medium-sized production companies.

KT CEO Koo Hyun-mo is answering questions from the press at the KT Media Content Business Strategy Presentation Press Conference held at KT Square, Gwanghwamun, Jongno-gu, Seoul on the morning of the 23rd. Photo by Kang Jin-hyung aymsdream@

Kim Cheol-yeon, co-CEO who moved to Storywiz from CJ ENM and Naver, also showed great affection for the KT-style creative ecosystem. He said, "I believe KT is the best at nurturing new creators," adding, "KT has the most diverse platforms to cultivate experts from mobile to TV and is expected to be a reliable partner."

Co-CEO Yoon Yong-pil said, "As comprehensive operators and commerce businesses enter the content market, the content industry is called a 'war zone without gunfire,'" adding, "In this period of upheaval, KT plans to enhance the valuation of each subsidiary's media business centered on Studio Genie and produce high value-added original IP."

The Responsibility as a National Company KT

KT's focus on the development and symbiosis of the Korean creative ecosystem stems from its responsibility as a 'national company.' It means contributing to the stability of Korea's production ecosystem based on KT's platform competitiveness and big data of 13 million customers. CEO Gu Hyun-mo also emphasized upon his inauguration in March last year, "I will make KT the national company that the people need the most."

Kim Cheol-yeon, co-CEO of KT Studio Genie, is answering questions from the press at the KT Media Content Business Strategy Presentation press conference held on the morning of the 23rd at KT Square, Gwanghwamun, Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The market expresses concerns about the increasing penetration of large overseas capital, such as from China, in the uncertain content market. Representative examples include indirect advertising (PPL) controversies, such as scenes of high school students eating hot pot in domestic convenience stores or eating Chinese-style bibimbap labeled in Chinese characters. The position of small and medium-sized production companies, which find it difficult to contact large overseas OTT companies, has become narrower.

CEO Gu Hyun-mo emphasized, "We will create an ecosystem where everyone cooperates," adding, "The most important platform is media content, and KT will take a further leap forward and help transform into a Digico. I believe this will also connect to enhancing KT's corporate value."

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