Summary
- Key Player: Tving (owned by CJ E&M, 035760:KS) and Wavve are set to merge, accelerating the competition in South Korea’s OTT market.
- Challenge: Netflix (NFLX:US) remains the dominant player, with the highest combined transaction volumes. Netflix plans to stop disclosing subscriber numbers starting from the next year.
- Data Insight: Aicel Technologies’ data shows a strong correlation with Netflix’s APAC regional revenue, enabling detailed performance analysis.
Introduction
The South Korean Over-The-Top (OTT) streaming market is experiencing significant changes, highlighted by the upcoming merger between Tving and Wavve and strategic shifts by Netflix. This blog post delves into these developments, using insights from Aicel Technologies’ consumer transaction data to provide a comprehensive overview of the market dynamics.
Accelerated Merger between Tving and Wavve
Strategic Merger Plans
SK Square (402340:KS) recently announced plans to accelerate the merger of Tving and Wavve, following a memorandum of understanding signed with CJ ENM (035760:KQ). As parent companies of Wavve and Tving, respectively, SK Square and CJ ENM aim to consolidate their positions in the domestic OTT market through this merger.
Market Implications
The merger is expected to create a stronger competitor in the South Korean OTT space, potentially challenging the dominance of international players like Netflix. By combining their resources and content libraries, Tving and Wavve could offer a more robust service to attract a larger subscriber base.
The Current State of the South Korean OTT Market
Netflix’s Dominance
Aicel Technologies’ consumer transaction data analysis indicates that Netflix (NFLX:US) holds the highest combined transaction volumes among major OTT players in South Korea. Despite having smaller market shares, Tving and Wavve have significant potential to grow and reshape the market landscape.
Shifts in Netflix’s Strategy
In a recent earnings announcement, Netflix disclosed its decision to stop reporting subscriber numbers from the first quarter of next year. This move marks a significant shift in the company’s strategy, potentially impacting how its performance is measured and perceived.
Utilizing Aicel’s Data to Analyze Netflix’s Performance
Data-Driven Insights
Aicel Technologies’ data reveals a correlation of over 98% with Netflix’s APAC regional quarterly revenue. This high correlation enables detailed analysis of Netflix’s performance in South Korea, including metrics such as average revenue per member (ARM) and retention rates.
Strategic Implications
The ability to accurately estimate Netflix’s subscriber numbers and revenue in South Korea using Aicel’s data provides valuable insights for stakeholders. These insights can inform strategic decisions and competitive strategies in the evolving OTT market.
Conclusion
The South Korean OTT market is at a pivotal moment, with significant mergers and strategic shifts reshaping the competitive landscape. The upcoming merger between Tving and Wavve and Netflix’s new reporting strategy are key developments to watch. Aicel Technologies’ consumer transaction data offers crucial insights into these changes, helping stakeholders navigate the market effectively.
