Netflix Shakes Up Korean OTT Market Amid Tving-Wavve Merger Delays

Netflix Throws a Wrench in Wavve-Tving Merger Plans

The Korean online video streaming (OTT) market is experiencing significant turbulence as the merger talks between Tving and Wavve drag into their ninth month. Adding to the complexity, Netflix’s aggressive moves and KT’s potential re-entry into the market have emerged as new variables, according to a recent report by Newsworks.

Tving-Wavve Merger Negotiations Prolonged

Industry sources reveal that while Wavve remains optimistic about finalizing the merger by year-end, Tving is maintaining a cautious stance. An industry insider commented, “The primary reasons for the delay are the complex shareholder structure and ongoing negotiations over content supply terms.”

Netflix Intensifies Content Acquisition Efforts

Global OTT giant Netflix is ramping up its offensive to capture the Korean market. According to industry sources, Netflix has recently proposed content supply deals to the three major terrestrial broadcasters and SBS at rates higher than those offered by Wavve.

Currently, there’s an agreement limiting content supply to other OTTs to two titles annually from terrestrial broadcasters. However, with this contract set to expire in September, there’s potential for change. A media expert analyzed, “Netflix’s moves could negatively impact the Tving-Wavve merger plans.”

KT Considers Re-entering OTT Market

KT’s actions are also drawing market attention. Telecommunications industry sources report that KT has recently commissioned global consulting firm BCG to assess its media business strategy.

An investment banking (IB) insider revealed, “There are rumors that KT is considering equity investment in the Tving-Wavve merger process. This could significantly influence the restructuring of the OTT market.”

Market Outlook

The Korean OTT market is entering a new phase, with the strategic choices of each player likely to shape the future landscape. The industry is keenly watching to see if these changes will lead to enhanced competitiveness in the domestic OTT sector.

As the situation unfolds, all eyes are on how these developments will impact the broader media and entertainment ecosystem in Korea.

Source: Newsworks