OTT Battle Led by Powerful 'Tentpole'... Korean Content Love Call

550 Billion Invested: Netflix Sparks Public
Disney Plus and Apple TV Plus Join In
Fierce Competition in Original Content

Domestic Companies Counterattack
Competing with Global Giants in Early Growth Stage
Regulators Call for 'Fair Market' Creation

[Asia Economy Reporter Cha Min-young] Following Netflix's announcement of a 550 billion KRW content investment plan this year, the competition for original works in the online video service (OTT) industry is intensifying with Disney Plus and Apple TV Plus, both preparing to enter the Korean market. It is expected that tentpole (key commercial films that serve as a financial backbone for the year) works will be showcased in line with the official service launch.

Overseas OTT Original Wars

According to industry sources on the 28th, Disney Plus, which is likely to enter the Korean market in the third quarter of this year, has signed a production supply contract with Studio&NEW, a subsidiary of the content media group NEW. The movie "Moving," based on Kang Full's webtoon, and the drama "You and My Police Class" are under review, and it is known that casting for the main actors has been completed and final preparations for filming are underway. Studio&NEW also signed a debt guarantee contract equivalent to a total production cost of 66 billion KRW for two works with Walt Disney Company Korea.

Apple's Apple TV Plus announced in March that it will release "Dr. Brain," a sci-fi work based on the Korean webtoon of the same name, as its first original Korean-language work. Actor Lee Sun-kyun stars, and Korean studio Bound Entertainment is producing it. Kakao Entertainment, Studio Plex, and Dark Circle Pictures are also participating in co-production. Apple officially launched Apple TV Plus in about 100 countries last November, excluding Korea, but has since added Korean subtitles and hired related personnel in Korea, raising the possibility of a full-scale entry.

Domestic OTTs Also Prepare Defensive Posture

Domestic OTTs are also increasing original content production aiming for differentiation. Netflix ignited the industry's content war by announcing a 550 billion KRW investment this year. Wavve began filming its first original drama "Tracer" at the end of July and plans to release it by the end of this year. Actors Im Si-wan and Son Hyun-joo were early confirmed as leads, and Lee Chan-ho, the newly recruited Chief Content Officer (CCO) and former Studio Dragon Chief Producer (CP), will lead the project. The story centers on a National Tax Service investigator fighting against power, with production handled by West World.

Season Original Movie 'Adults Don't Know' Poster. Photo by KT Season

Coupang's OTT service, Coupang Play, chose "SNL Korea" as its first original variety show. It signed a production contract with AStory aiming for a summer release. As exclusive content, it is expected to strengthen Coupang's existing paid membership service, Wow Membership. Watcha, after releasing an original documentary program about the Hanwha Eagles, plans to unveil the "Unframed Project" in December in collaboration with production company Hardcut. Tving plans to release about 20 original contents this year. Recently spun off KT Season, led by Season, is also releasing various contents including the recently released movie "Adults Don't Know," idol variety shows, movies, and dramas.

"Domestic OTT Differentiation Must Be Prevented"

From the perspective of the content industry, which has been undervalued until now, the content investment competition ignited by overseas OTTs is a welcome development. A content industry official said, "The results of the works will determine the timing of overseas OTT services' entry into the domestic market," adding, "The domestic content industry is currently flooded with production inquiries, showing an early stage similar to when Netflix entered Korea four years ago, and the market landscape is expected to be much larger than then."

However, there are concerns that domestic OTT platforms, which are still in the early stages of growth, may face disadvantages in content procurement or user acquisition during competition with overseas OTT giants, so some level of protection is necessary. It is said that oversight by the Fair Trade Commission and the Korea Communications Commission is needed for fair market competition. Choi Jin-eung, a legislative researcher at the National Assembly Legislative Research Office, emphasized in a report, "Regulatory agencies need to actively respond to acts by global OTTs that use their dominant position in the domestic market to discriminate against domestic OTTs through exclusive content supply contracts or infringe on the interests of domestic consumers."

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