KT to build media value chain with $4.1 bn content sales by 2025

KT Corp., a major South Korean telecommunications company, on Thursday unveiled an ambitious goal to become the country’s leading media and content group by strengthening its media value chain.

To achieve the goal, the company said it will strive to secure more intellectual property content and beef up its content production and distribution channels, targeting 5 trillion won ($4.1 billion) in annual sales from its media and content business by 2025, up 39% from 3.6 trillion won in 2021.

“With various original IP and entertainment content we’ve accumulated over the past year, we will showcase well-made drama series from this year,” said Kim Cheol-yeon, chief executive of KT Studio Genie, a content production subsidiary of the telecommunications giant.

At a press conference, he said KT Studio Genie will unveil a total of 24 drama series over the next year from this May.

KT Studio Genie, established in January of last year, creates drama series, film and entertainment content based on the original intellectual property owned by Storywiz, another KT affiliate focusing on webtoons and web novels.

Studio Genie distributes content on the KT group’s platforms, including SkyTV, Olleh TV and KT SkyLife channel. It also uses KT’s mobile-oriented platforms such as KTH and Seezn, a video streaming service.

As part of its efforts to widen distribution channels, KT last month attracted 100 billion won in investment from CJ ENM Co., Korea’s entertainment powerhouse.

The two companies also agreed to set up a joint investment fund to explore business opportunities in the virtual media business arena using virtual reality and augmented reality technologies.

TALK OF SEEZN, TVING MERGER

Industry watchers said KT may eventually seek to merge Seezn with CJ’s over-the-top (OTT) platform TVing.

“There are no concrete ideas on a merger of the two OTT services. But we’re always open to such a possibility,” said Kang Kook-hyun, chief of KT’s customer business division.

KT said on Thursday it will spend 500 billion won over the next three years to secure 30 original drama series and produce over 300 entertainment programs via SkyTV.

In a show of its intensified efforts to revitalize its content business, KT plans to change the name of its TV channel Sky to ENA, coined by combining entertainment and DNA.

The telecom giant's latest investment comes as video streaming platforms have stepped up spending on original content.

Local rival Wavve, operated by Korea’s top mobile carrier SK Telecom Co. and the country's three major broadcasters, has promised to invest 300 billion won in original content by 2023.

Global streaming service Netflix Inc. said in January it will release 25 Korean-language drama series this year, including six original films and 18 series.

In 2021, it showed 15 Korean original programs, including Squid Game, the streamer’s biggest show ever.

Write to Seung-Woo Lee at leeswoo@hankyung.com
In-Soo Nam edited this article.