A file picture shows the opening ceremony of SK Telecom's 5G service.[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
SEOUL -- Anti-trust regulators approved an integrated over-the-top (OTT) platform pushed by South Korea's top mobile carrier, SK Telecom, to check Netflix, which has gained popularity in a rapidly growing video content streaming market with greater support from many young users.
The green light from the Fair Trade Commission (FTC), a state body, came on Tuesday, seven months after SK Telecom (SKT) agreed with three major domestic broadcasters to merge their OTT services. The merger of SKT's Oksusu and POOQ operated by broadcasters was seen as a strategic move to compete with the world's top video content streaming service which launched its service in South Korea in 2016.
OTT services deliver film or TV drama content over the internet. POOQ has offered free TV streaming services with contents from foreign newsmakers, while Oksusu has focused on e-sports and virtual reality (VR)-based OTT service.
To ensure fair competition, three terrestrial broadcasters should reliably supply VOD (video-on-demand) to other OTT service providers for three years. VOD is a form of video media distribution that allows users to consume TV and movie-content whenever they choose. In the OTT market, the high-quality contents of terrestrial broadcasters are recognized as core contents.
SKT was not allowed to make it mandatory for subscribers to sign up for telecom service. SKT has vowed to act as an advance guard for protecting the domestic OTT market. The merged entity would control one-fourth of South Korea's pay-TV market.
Original contents, including dramas and movies tailored to match OTT video-on-demand service users in South Korea, have contributed to a sharp increase in the number of Netflix fans. Netflix has aggressively added a lineup of South Korean blockbuster drams to attract young viewers who consume video content on the go in buses and subways using smartphones.
Netflix has provided a wide range of content including hit TV dramas and movies and analysts predict the American OTT service still has huge potential to grow in South Korea where super-fast 5G mobile networks, ideal for high-definition video streaming, are being established. To stop Netflix's dominance, local service operators including internet protocol TV (IPTV) and OTT operators have teamed up to combine their services.
reporter
Lim Chang-won
cwlim34@ajunews.com
