Beyond partnerships, directly producing... Telecom 3 companies focusing on in-house content creation

From Talent Recruitment to LED Wall Studio Opening
"Content Determines Platform Success"

LG Uplus models introducing their own content specialty brand ‘STUDIO X+U’ and the first content, the sports factual series TVING original 'OUR GAME'. Photo by LG Uplus

[Asia Economy Reporter Oh Su-yeon] The three major telecom companies are focusing on the "power of originals." Along with strengthening their media business, they are putting effort into producing content in-house.

On the 27th, LG Uplus announced the launch of its content-specialized brand "Studio X+U" and revealed plans to produce the TVING original program "Our Game." Studio X+U is responsible for everything from content planning, production, directing, distribution, format development, to supply chain partnerships.

LG Uplus recruited Lee Sang-jin, Executive Director in charge of Content IP Business, who previously worked at CJ ENM and HYBE, last year. Earlier this year, they appointed Lee Deok-jae, a media content expert from CJ ENM, as Chief Content Officer (CCO). Recently, they also brought in star PDs such as Shin Jung-soo, who directed "I Am a Singer," and Lim Hyung-taek, famous for "Running Man." They are securing original content by co-producing the parenting variety show "Our Child Has Changed Returns" with SBS Plus.

Strange Lawyer Woo Young-woo Poster. Photo by KT

KT's drama "Extraordinary Attorney Woo," produced by Studio Genie, has gained popularity in the global market, marking a successful entry into the content production market. Additionally, shows like "I Am Solo" and "Steel Troops" have consecutively succeeded in ratings.

SK Telecom is extensively developing its media business through its subsidiary SK Broadband and affiliated online video service (OTT) Wavve. SK Broadband secures original content through its subsidiary Media S, and Wavve through Studio Wavve. In June, they also opened "Team Studio," an LED wall-based content production facility in Pangyo, Seongnam City, Gyeonggi Province.

Team Studio exterior. Photo by SKT

In the past, the three telecom companies focused on securing high-quality content by partnering with verified partners rather than producing content themselves. They centered their media business on paid broadcasting such as Internet Protocol TV (IPTV), treating content as a secondary means. As a result, last year, the three telecom companies fiercely competed to partner with Disney+. Recently, the atmosphere has changed. As they foster non-telecom new businesses, the focus of the media business is shifting from partnerships to in-house production. Recognizing that exclusive killer content determines platform competitiveness, securing long-term growth drivers has become more important even if immediate results are not achieved.

Professor Kim Yong-hee of Dongguk University Graduate School of Film and Video said, "The three telecom companies are paying attention to the fact that content affects platform performance," adding, "Compared to OTT, IPTV lacks original content competitiveness, making it important to secure production capabilities."

Although the three telecom companies' in-house content production achievements are still in the early stages, they are proving their potential. As of the second quarter, SK Telecom's media revenue was 382.1 billion KRW, a 22.3% increase compared to the same period last year. During the same period, KT's media revenue was 500.8 billion KRW, up 1.6% year-on-year, and its content subsidiary's revenue increased by 34.7% to 285.3 billion KRW. LG Uplus has not separately disclosed media-related business revenue, but IPTV revenue was 327.6 billion KRW, up 7.8% year-on-year.

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