Watcha, partnered with KT M-Mobile and Skylife
Combination of telecommunication rates for the first time in 6 years after entering OTT
Competitors such as Coupang Play and Disney+
KT, whose users are declining in season, seems to be a new opportunity [Seoul Economy]
Domestic startup online video service Watcha joined hands with KTs budget phone and rolled up its arms to expand users. As an independent OTT, Watcha compensates for the lack of connection with telecommunication companies, and KT, with its own OTT season users stagnant, is interpreted as aiming for a win-win effect of securing content. It is analyzed that Watcha and KT counterattack by establishing a common front amid fierce battles between domestic and foreign OTTs.
On the 16th, Watcha announced that it would introduce a rate plan affiliated with KT M-Mobile and KT Skylife. Watcha introduced two rate plans with KT M-Mobile and KT Skylife, respectively, at 35,900 won per month and 41,900 won per month. Watcha Basic, which can watch OTT on mobile, PC, and TV in FHD image quality, is bundled with 11 GB of data per month and 5 GB of data per day, respectively.
It is the first time that Watcha has offered a telecommunication carrier-affiliated rate plan since it started its OTT business in 2016. Until now, Watcha has been conducting business independently without partnering with other companies. As a result, it has been difficult to expand users.
According to the Mobile Index, the number of monthly OTT users in Korea as of February was 8.52 million for Netflix, 3.41 million for Wave, 2.67 million for Tving, 2.39 million for Coupang Play, 1.24 million for Disney+, 1.09 million for Season, and 780,000 for Watcha. Since Disney+ entered Korea in October of last year, the only OTTs with a decrease in MAU were Season and Watcha.
While Netflix, the global No. 1 OTT company, maintains its solid No. 1 position, each operator is increasing the number of users through business connection. In Wave, SK Telecom, a major shareholder, is a weapon of its affiliated rate system. Teabing and Coupang Play are each trying to secure users by linking with Naver and Coupang memberships. Disney+ is expanding its Internet TV partnership with LG U+ as its main partner.
Watcha is expected to expand its user base in earnest through this budget phone partnership. Watcha is a company that started as a movie rating app and expanded its service to OTT. It boasts a powerful recommendation function based on users rating big data. There are many art and independent films that cannot be found in other OTTs. However, it has been pointed out that the appeal power is weak except for the ‘mania’. An industry official said, “There are many rare movies and original series that can only be seen on Watcha, but there are not enough entertainment shows and dramas that are updated every day.”
The possibility of combining the webtoon, web novel, and video subscription products Watcha is preparing with the telecommunication service plan is also raised. Park Tae-hoon, founder and CEO of Watcha, said on ‘Watcha Media Day in 2022’ last month, “I announced that I would release ‘Watcha 2.0,’ a subscription product that bundles webtoons and music on the existing OTT. Watcha is the first to offer unlimited subscriptions to webtoons and web novels. An industry insider said, “It reads as a sign that we are going to compete in earnest by expanding the scope of content and diversifying subscription methods.”
There is also an analysis that a partnership with Watcha can be an attractive option for KT, whose OTT season users are decreasing. This is because, while increasing user choice, it is possible to easily provide the unique contents of Watcha. The season is expanding its own content, but it is struggling in competition with Wave and Teabing, which are linked with the airwaves and cables, respectively. An official from the telecommunication industry said, “As the possibility of a joint affair in the OTT market is raised, there is a possibility that the two companies will start a more full-scale union, starting with a rate alliance.”
