Once hailed as Netflix’s formidable rival, South Korea’s leading OTT service Wavve is now facing a severe crisis. Today’s Herald Economy reports, “Wavve, once considered a potential competitor to Netflix, has taken the unusual step of offering a 50% discount on subscription fees. This comes as complaints of ‘nothing to watch’ have surged, leading to a loss of 2 million monthly users in just over a year.”
Content Shortage: Wavve’s Achilles’ Heel
Wavve’s most significant problem is the lack of original content. This year, the company has not produced any new dramas or movies. The main reason cited is a significant reduction in new investments due to accumulated losses of 200 billion won over two years. Notably, Wavve has essentially abandoned drama production due to increased production costs, largely driven by rising actor fees.
Reliance on Reruns
With a shortage of new content, Wavve is relying on reruns of past popular terrestrial TV dramas like “My Name is Kim Sam-soon” and “I’m Sorry, I Love You.” This strategy is exacerbating users’ complaints of “nothing to watch.”
Plummeting Subscriber Numbers and Market Share
Wavve, which once boasted over 6 million monthly users, has now dropped to around 4 million. This puts it behind Netflix (11 million), as well as TVING and Coupang Play (7 million each), relegating Wavve to last place in the domestic OTT market.
Uncertain Future
To overcome its current crisis, Wavve has been pursuing a merger with TVING since December last year. However, nine months on, no agreement has been reached. Industry observers are skeptical about the merger’s prospects.
Wavve’s crisis serves as a stark reminder of the importance of original content and continuous investment in the OTT market. All eyes are on Wavve to see how it will overcome this crisis and regain its market position.
