In South Korea, the OTT industry has recently witnessed a noteworthy event: the Qatar Asian Cup.
The Korean national team advanced to the semi-final after a series of dramatic wins.
This event marked the first time in a long while that South Korean fans have rallied around a screen. However, it wasn't terrestrial or cable TV capturing the spotlight this time, but OTT platforms.
Here are my thoughts:
Unusually, this year's Asian Cup was broadcast not by terrestrial or cable TV, but by local OTTs Coupang Play and TVING, meaning people couldn't watch the matches in the usual way. Korean OTTs, similar to their American OTTs, are just investing sports content.
Coupang, aspiring to become Korea's Amazon, has focused on sports content right from the start, taking cues from Amazon. It having fewer subscribers than Netflix, TVING, and Wavve, Coupang was a latecomer to the OTT market. Nevertheless, it has heavily invested in sports content to gain a competitive edge, acquiring rights to popular sports like La Liga, the NFL, and the NBA.
TVING, a subsidiary of CJ ENM — South Korea's largest content provider — has traditionally offered dramas and movies to its viewers. However, faced with a widening subscriber gap with Netflix, the leading OTT, and ongoing losses, it decided to take action. In 2023, TVING changed its leadership and made an independent investment. TVING made headlines in 2024 when it secured the rights to broadcast the Korean Baseball Organization (KBO).
So, why are OTTs globally investing in sports content? Many experts argue that it's due to the dedicated fanbase and the longer attention spans sports content commands compared to dramas and movies. Movies and dramas typically enjoy a lifespan of a month or two, while sports broadcasting spans several months to a year, depending on the sport. This topicality retains subscribers for a longer period, unlike movie and drama fans who may unsubscribe after consuming the content. Each sport boasts its own unique fanbase, which is more predictable and stable than that of movies and TV.
With the success of the Asian Cup, Coupang Play and TVING are likely to continue investing in sports content. Although debates over the public's right to access major sporting events persist, viewing habits change rapidly. It will be interesting to observe how South Korean OTTs leverage sports content to challenge Netflix.