[IPR Forum] "Fierce Competition Among OTT Subscribers... Companies Expanding Service Areas Hold Advantage"

Hyunggon Park, Partner at Deloitte Consulting Korea

Park Hyung-gon, Managing Director at Deloitte Consulting Korea, is giving a lecture on the topic of "Next Generation Advanced Technology, Media, and Telecommunications Industry" at the "2022 Asia Economy IPR Forum" held on the 8th at the Bankers Hall in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jang Hyowon] Park Hyung-gon, Partner at Deloitte Consulting Korea, gave a lecture on the theme of "Next Era Advanced Technology, Media, and Telecommunications Industry" at the 2022 Asia Economy IPR Forum titled "Era of Crisis, Economy After Crisis," held on the 8th at the Seoul Banking Hall. He introduced recent trends and future prospects divided into six chapters: screen, semiconductor, network, medical services, eco-friendliness, and new technologies.

First, in the screen sector, he analyzed online video services (OTT), game consoles, and addressable TV advertising. The OTT market is currently seeing fierce subscriber competition among numerous subscription video on demand (SVOD) providers such as Netflix, Disney Plus, and Wavve, with global churn rates expected to rise up to 30%.

Partner Park explained, "As SVOD enters maturity, advertising-based models will gradually become the foundation for market growth," adding, "Media companies that expand their service areas beyond just video streaming will gain competitive advantages and improve overall revenue."

He also forecasted that game consoles are continuously evolving by innovating business models through content subscriptions, downloadable content, in-app purchases, and cross-play, indicating ongoing growth potential. Regarding addressable TV advertising, he analyzed that exposing ads to the majority of viewers is more effective than personalized targeting.

The second chapter focused on the semiconductor market. He predicted that semiconductor demand will surge due to data centers, automobiles, and artificial intelligence (AI) development, leading to a supply shortage continuing through this year. To resolve this, companies and governments are increasing investments, expecting the semiconductor market to sustain long-term growth.

The third topic, networks, highlighted fixed wireless access (FWA) and Wi-Fi 6. FWA is an internet service technology that connects two fixed points, such as a mobile communication transmission tower and a customer's home or office, using radio waves. Wi-Fi 6 is a core technology for building advanced networks beyond 5G.

Partner Park stated, "FWA is becoming a substitute for wired connections, offering excellent cost and quality competitiveness, thus increasing its commercial feasibility," and added, "Wi-Fi 6 devices are priced lower and more widely available than 5G devices, with Wi-Fi 6 device sales significantly surpassing those of 5G."

The fourth chapter on medical services introduced health wearable technology and mobile mental health apps. Although 320 million consumer health wearable devices are expected to be distributed worldwide this year, the wearable market faces issues such as increased burden on healthcare systems, health anxiety, and risks of personal data leakage. While regulatory tightening is anticipated, the market still trusts the growth potential of wearables.

He also analyzed that the mobile mental health app market is growing rapidly due to surging demand for mental health care. He explained, "To meet the increasing consumer needs, mental health apps will need to explore new revenue structures such as tiered subscription plans or customized paid programs."

The fifth chapter covered eco-friendliness and diversity. He pointed out that companies should extend smartphone lifespans and strive to reduce carbon emissions to enhance sustainability. He also introduced the potential value of floating photovoltaic (FPV) solar power, gender disparities in reading volume, and efforts to strengthen gender diversity in advanced technology companies.

Finally, the sixth chapter presented new technologies and trends such as sports non-fungible tokens (NFTs), homomorphic encryption and federated learning, quantum computing, and AI. In particular, he forecasted growth in the sports sector for NFTs.

He analyzed, "This year, sports media NFT transaction volume will exceed 2 billion dollars, with 4 to 5 million consumers worldwide," adding, "If a successful platform suited to the characteristics of NFTs is established, the NFT market will continue to grow and become a key means to digitalize, globalize, and commercialize fan experiences."

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