Stepping Backward
These days, over-the-top (OTT) content providers such as Netflix are in fierce competition with one another in the global media market while leading information and communications technology (ICT) companies like Apple, Amazon and YouTube are jumping into the broadcasting and video market. Meanwhile, the South Korean media market is still being led by small firms. Besides, the South Korean Fair Trade Commission’s recent decision not to allow a merger between SK Telecom and CJ HelloVision is likely to hinder the growth in the size of South Korean media companies for the time being.
According to industry sources, Apple is currently working on a reality TV show, titled Planet of the Apps, and is receiving applications from app developers to participate in it. This show is going to show app developers consulting with experts and funded by venture capitals to develop their apps for supply to the Apple App Store.
Apple has long been interested in broadcasting content production. Recently, there was a rumor that it would take over Time Warner. It is also said that Apple is making music documentaries now. iPhone users around the world already familiar with the App Store and iTunes are likely to have an easy access to Apple’s broadcasting content in the near future.
In the meantime, Netflix stepped into the South Korean market early this year and is now increasing its presence in the industry by producing content targeting South Korea and Southeast Asian countries on its own. Netflix is planning to win over South Korean media consumers with TV dramas, movies and reality shows directed and performed by South Koreans such as the second season of Sense8.
In the South Korean media industry, however, market restructuring and competitiveness enhancement are not going well due in part to terrestrial broadcasting companies’ attempt not to lose their vested rights. Nevertheless, their influence is on the wane nowadays. According to the Korea Creative Content Agency, terrestrial broadcasting channels’ average viewer rating fell from 24.3% to 17.34% between 2002 and 2014.
It was none other than the terrestrial channels that most strongly objected to the merger between SK Telecom and CJ HelloVision. Some in the broadcasting industry are thinking that the Fair Trade Commission yielded to their pressure in determining not to approve of the merger. SK Telecom prepared a fund of 350 billion won for the development of the domestic content industry, but the spending of the fund has been put on hold due to the disapproval.