This computer-generated image shows Tving and Wavve, South Korean over-the-top platforms, provided by Yonhap News TV. (Image courtesy of Yonhap)
SEOUL, Dec. 5 (Korea Bizwire) — Operators of Tving and Wavve, two major South Korean over-the-top (OTT) platforms, said Tuesday they have signed a memorandum of understanding to push for a merger in an apparent effort to compete with global streaming giants.
But CJ ENM Co. and SK Square Co., respective owners of Tving and Wavve, did not elaborate on the details of the agreement.
Industry sources said CJ ENM is expected to become the largest shareholder of the integrated platform and SK Square the second-biggest shareholder.
The two companies will sign a formal contract next year after the Fair Trade Commission, South Korea’s antitrust watchdog, approves the merger, according to the sources.
Once approved, the integrated platform is expected to have a combined 9.3 million monthly active users (MAUs), including the overlapping tally, outnumbering the current No. 1 homegrown OTT, Coupang Play, with a leading 5.3 million MAUs.
Netflix is the biggest streamer in South Korea with about 11.4 million MAUs, according to data compiled by Mobile Index.
(Yonhap)
