Streaming Services Forge Strategic Alliances as Korean Market Matures | Be Korea-savvy

Streaming Services Forge Strategic Alliances as Korean Market Matures


Traditional broadcasters, facing declining viewership, are actively repositioning themselves as content studios and distributors for streaming platforms. (Image courtesy of Kobiz Media)

Traditional broadcasters, facing declining viewership, are actively repositioning themselves as content studios and distributors for streaming platforms. (Image courtesy of Kobiz Media)

SEOUL, Jan. 13 (Korea Bizwire) — In a maturing streaming market, success increasingly depends not just on compelling content but on strategic partnerships between diverse media players.

Netflix’s recent strategic alliance with SBS to offer the broadcaster’s programs to Korean subscribers and Disney+’s unprecedented decision to premiere its hit series “Moving” on MBC television exemplify this evolving landscape. 

Traditional broadcasters, facing declining viewership, are actively repositioning themselves as content studios and distributors for streaming platforms, seeking both production funding and broader distribution. This marks a shift toward a more collaborative relationship between traditional broadcasters and streaming services, even as they continue to compete.

Partnerships with major internet portals have emerged as another key strategy. Netflix recently partnered with Naver to offer Naver Plus subscribers access to Netflix’s ad-supported standard plan at no additional cost, following a similar arrangement between Tving and Naver Plus.

Given Naver’s strong user base among consumers in their 30s and 40s with significant purchasing power, the portal has become an essential strategic partner for streaming services seeking to expand their reach. 

Industry observers expect the current market structure – with Netflix leading, Tving in the middle tier, and Wave, Coupang Play, and Disney+ forming a lower tier – to continue through the new year. However, they’re closely watching these cross-industry partnerships. 

“The market’s maturity signals the need for service diversification and cross-industry alliances to drive change,” said Noh Chang-hee, director of the Institute of Digital Industry & Policy, on January 12. He emphasized the importance of monitoring changes in service composition and packaging strategies, including ad-supported tiers and membership programs. 

Meanwhile, despite growing interest in short-form content among viewers in their teens and twenties, industry experts predict sustained demand for long-form content. “While traditional TV entertainment is migrating to YouTube, recent successful YouTube content shows that viewers in their 30s to 50s still need long-form content to fill their time, even in an era dominated by short-form videos,” Noh explained.

The migration of traditional long-form content to YouTube is expected to continue, driven by the platform’s real-time advertising revenue model that allows content creators to monetize views immediately.

Kevin Lee (kevinlee@koreabizwire.com) 

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