[Click eStock] KT Launches Full-Scale Content Investment with 'Studio Gini'... Will It Deliver 5G 'Killer Service'?

Planning, Investment, Production, and Distribution All Managed... Utilizing Big Data Based on 13 Million Users

Yoon Yong-pil, co-CEO of KT Studio Genie, is making a presentation at the KT Media Content Business Strategy briefing held on the morning of the 23rd at KT Square, Gwanghwamun, Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Minwoo Lee] KT has taken a full-scale step into content investment by establishing its subsidiary 'Studio Genie.' Attention is focused on whether it can secure a 'killer service' in the 5G era.

On the 24th, Daishin Securities maintained a 'Buy' rating and a target price of 36,000 KRW for KT. The previous day's closing price was 26,700 KRW. Although there are several specialized content companies, the judgment is based on the ability to differentiate using big data.

Earlier, KT established 'Studio Genie,' a content-specialized corporation responsible for planning, investment, production, and distribution. The plan is to secure 1,000 original intellectual properties (IPs) by 2023 and invest in 100 proprietary content pieces based on them. With investments ranging from 5 billion to 10 billion KRW per work, the total investment scale is expected to surpass that of other domestic operators. Kim Hoejae, a researcher at Daishin Securities, explained, "KT's various subsidiaries will demonstrate expertise in their respective fields, and Studio Genie plans to build a governance structure through them that can generate stable profits."

IP discovery is handled by Storywiz, while planning and investment utilize Studio Genie, KT's own funds, blind funds, and project funds. For production, collaboration with various production companies is ongoing, with potential internalization through mergers and acquisitions (M&A) in the future. Distribution is based on 13 million wired and wireless subscribers through IPTV, Skylife, and SEEZNN, with KTH and Genie Music expected to be responsible for distribution of broadcasting rights and OSTs, respectively.

Attention is on whether the content business can secure a 5G 'killer service.' Previously, in the mid-2000s, KT promoted content business by owning Olive Nine and Sidus FNH. At that time, it was before the IPTV business, so the subscriber base was insufficient, resulting in poor performance. However, currently, KT has secured the largest paid subscriber base in Korea with over 13 million wired and wireless subscribers. Additionally, based on users' real-time and VOD viewing data, KT has built a hit prediction model and is conducting tests on various platform contents.

Researcher Kim said, "Content is an important killer service for 5G," adding, "While the content business through Studio Genie itself is important, as the number one 5G operator with a 27.4% 5G penetration rate, KT is expected to maintain leadership in 5G through content."

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