South Korean operator KT has announced plans to acquire more than 1,000 works of intellectual property in media content by 2023, to boost its media and video streaming business. KT will initially establish a KRW 10 billion (approximately USD 8.86 million) fund to finance the production of intellectual property, Yonhap news agency reports, citing KT CEO Ku Hyeon-mo. The operator then aims to create 100 original productions by 2023.
KT recently revamped its media content business structure with new production subsidiary KT Studio Genie, which will create titles based on original content developed by KT's webcomic unit StoryWiz. The production company will supply the titles to other affiliates under the broader KT Group, which operates a range of media platforms from IPTV to video streaming service Seezn and holds 13 million paid media subscriptions.
KT also plans to partner with Walt Disney Co., which is set to launch its video streaming service Disney+ in South Korea later this year. "We don't see Disney+ as competition," Kang Kook-hyun, KT's chief of customer business, said. "KT Studio Genie could conduct joint content investment (with Disney)", he added.
KT's media business posted revenues of KRW 3.2 trillion won in 2020, up 15 percent annually on average over the past decade.
Market competitor Wavve, operated by SK Telecom and the country's three major broadcasters, recently announced plans to invest KRW 300 billion in original content by 2023. US-based Netflix recently announced plans to invest USD 500 million in 2021 on Korean films and TV series.
Netflix currently has over 10 million monthly active users on the local market, followed by local rival Wavve with 3.95 million users and Tving with 2.65 million, while KT's Seezn serves 1.69 million subscribers, according to data tracker IGAWorks.
