Like a shipbreaker … Global media dinosaurs in Korea



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The American Online Video Service & # 39; Netflix & # 39; invests in content production in Korea

Lee Byung-hun, an American agent from Chosun, who returned to Korea to Netflix's Mr.

"Is this an ally?"

A scene from TVN drama Sean Shine & # 39; recently televised. The main character (Kim Tae-ri), who was a lifeguard, asked about the inside of the US military sniper (Lee Byung-hun) who thought he was a comrade. The blooming period of the Joseon Dynasty, which had been shaken by the outcry, resembled the current media market. Just as the new culture, such as trains and hotels, has misplaced the spirit of the people, the dinosaurs of the world media are hitting the Korean ancestral mausoleum with huge capital. The tragedy also garnered most of the production costs (40 billion KRW) through a supply contract with Netflix, an online video service provider in the United States

More than 125 million US dollars. subscribers in 190 countries, Netflix took the train of the domestic media industry. It's the company that has exceeded the number of cable TV subscribers in the United States and has become the main character of the "code cut". Netflix CEO Reid Hastings told Old Media that "the era of television will last until 2030".

○ "Offensive Content" Netflix hit the platform industry

Netflix launched the Korean service in January 2016, but contrary to expectations, I struggled for a moment. It was the main badessment that the caustic rain was falling. Korean content was insufficient, and the attractiveness was not great compared to the existing pay-TV that lowered the sensational price as a combined product. Domestic subscribers remained at around 300,000 for two years. The reason for the reversal is that Netflix has been directly involved in content creation. In the national media industry, it was originally from Osan, although Netflix predicted it would be a bridgehead to enter the Asian market rather than targeting directly the Korean market. Netflix has entered into a content alliance with national broadcasters such as tvN, followed by direct involvement in the creation of content such as "Oja", "You", "Kingdom" and so on.

Netflix's upcoming battle with the platform was confusing. Indeed, platform vendors may not be able to follow the practice of buying content at lower cost because of their influence. In fact, Netflix's overall content investment totaled $ 8 billion this year (about 9 trillion won). In the case of Mr. Sean Shine, Netflix would have supported at least 1.2 billion won per synagogue. Considering that the production cost of terrestrial drama is 500 million won, it is more than doubled.

Broadcasters, including terrestrial broadcasters, said in May that the growing influence of Netflix would destroy the ecosystem of the media industry. It is worrying that national content producers are part of Netflix's outsourcing base. " While the domestic IPTV plans to pay a 90% commission with Netflix as part of a partnership, the domestic content producers (CPs) also argue that it is about 39, tariff discrimination. Domestic PCs appear to be overvalued relative to revenue sharing from 6 to 4 or 5 to 5 for Pay TV and VOD platforms.

However, there is strong opposition to the emergence of Netflix. This is the badysis that will be able to ensure stable sales abroad through the global distribution network and increase the level of domestic content with a huge role investment and buyer. Directors, screenwriters and national actors who have been recognized as star players on the international stage on Netflix can play ransom. Professor Jung Hyun-Chung of the School of Business Administration said: "In the past, our platforms and distribution channels were structured to take advantage of inexpensive and inexpensive content rather than producing content from quality through aggressive investments. " Media policy cleaved by … Concerns about reverse discrimination

The problem is that there is no control tower to deal with global media raids such as Netflix. Currently, government organizations are not able to demonstrate their policy leadership because they are fragmented by content, platform, dictionary and post regulation, which is not compatible. with the trend of fusion. Unlike the US Federal Communications Commission (FCC), Korea shares its broadcasting and telecommunications policies with the Ministry of Science, Technology and Information and the Korea Communications Commission.

According to current law, OTT operators are subcontractors of the Ministry of Information and Communication (MIC) as additional telecommunication carriers among telecommunication operators, but the regulation of communications is under the control of the Korea Communications Commission. OTT operators are required to report to the authorities and are not subject to any prior regulation. On the other hand, competitive broadcasting, which is heavily regulated by the laws on radio and television over IP, is considered reverse discrimination. Lee Hyo-seong, chairman of the Korea Communications Commission, explained the task of the Korea Communications Commission last year: "The convergence of broadcasting and communication has deepened, but we are different. It's against time. "

In some places, it is also stated that operator awareness is more important than the political approach. Lee Jong-kwan, a lawyer specializing in Sejong, said: "Our OTT and broadcast platforms offer similar content in similar payment systems, so there is no difference. If there is not enough space to invest by itself, you have to cooperate and make economies of scale by fragmentation. "

Shin Dong-jin, reporter [email protected]

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