Korean Broadcasters Unite: Rivals Share Key Content Across Platforms in Landmark Move

On April 6, South Korea’s KT Group announced plans to start providing its flagship IPTV (Internet Protocol Television) content via external OTT (Over-The-Top) platforms, extending its reach further than just its proprietary channels. This change represents a significant pivot for Genie TV, KT’s IPTV service, as it moves away from keeping major shows confined solely to its own platform.

The transformation began with the launch of “New Recruit Season 3” on April 7th, available for streaming on CJ ENM’s platform, Tving. Prior to this, “Mother and Mom” was released simultaneously across two platforms. Looking ahead, the variety show “Tastefully Yours” will be premiering next month on both Genie TV and Netflix.

The country’s leading free-to-air networks—KBS, SBS, and MBC—are likewise adopting this practice, joining the rising movement of distributing content concurrently through various channels.

KBS started broadcasting its latest drama “Kick Kick Kick” on Tving in February and has also provided previous popular shows such as “Descendants of the Sun” and “Fight for My Way” to Tving subscribers.

This year, SBS, which has historically kept programs such as “Running Man” and “Sandglass” exclusive to its own networks or platform Wavve, signed a six-year agreement with Netflix to make these shows available worldwide.

MBC has extended viewing options for its popular variety program “Infinite Challenge,” making it accessible not only through Coupang Play but also via streaming services such as Chzzzyzik and SOOP.

These actions mark a substantial shift from previous approaches, where South Korean broadcasters and pay-TV operators mostly refused to share their content with international OTT platforms like Netflix.

Up until lately, they kept strict control over how their content was distributed to protect their market share. However, with increasing manufacturing expenses and diminishing sway over audiences, they are now seeking broader distribution channels to bolster their profit margins.

For many years, much of the top broadcasting companies’ content was hard to come by outside of Wavve, which is a local streaming platform jointly owned by KBS, SBS, MBC, and SK Square. The reason for this strategy was to create a unified stance against international powerhouses such as Netflix.

However, the situation started changing when the broadcasters’ contract for exclusive content with Wavve ended in November. SBS was the first to adapt, entering into an agreement with Netflix in December. Soon after, KBS joined forces with Tving, and MBC has also been broadening its licensing activities, particularly through popular shows such as “Infinite Challenge.”

The choice to relax exclusivity rules arises as broadcasters face increasing financial pressures.

The production expenses have skyrocketed whereas advertising incomes have plummeted, leading to a decline in overall profitability. Over the last three years, KBS has reported a total net deficit of around 14.1 billion won ($9.5 million).

In 2023, nSBS reported an operational shortfall of $12.9 million, marking their first financial loss since 2016. Meanwhile, MBC experienced a significant decline in operational earnings, falling from $38.2 million in 2022 to merely $4.4 million in the previous year.

Pay-TV service providers, such as IPTV and cable companies, are encountering comparable challenges. The content creation division of KT, known as KT Studio Genie and responsible for producing the dramas aired on Genie TV, saw their revenues drop by 16%, totaling approximately $304.9 million last year. Their operational profits plummeted by almost 74%, amounting to about $8.1 million, primarily due to escalating expenses associated with drama productions eating into their profitability.

“We had hoped to boost profitability by keeping content exclusive to our paid platforms,” a KT official said. “But market conditions have made that difficult.”

With an increasing number of broadcasters distributing their content through various platforms, the trend referred to as “multi-homing” is becoming more prevalent.

Between August and December of last year, out of the 1,455 programs accessible across six prominent domestic OTT platforms, 636—which equates to 43.7%—could be streamed on at least two of these services.

Professor Hwang Yong-seok from Konkuk University noted that this demonstrates how conventional broadcasters and content creators are addressing the increasing influence of OTT platforms by aggressively broadening their reach for distributing content.