KT strikes exclusive content deal with Sony, ABC

Models pose with a placard highlighting KT’s latest moves to put the latest and most popular American TV series content on its Internet TV platform via an exclusive partnership with Sony Pictures Television and ABC, Tuesday. / Courtesy of KT

By Kim Yoo-chul

KT, the country’s dominant fixed-line operator, announced an exclusive partnership with Sony Pictures Television and ABC, the biggest U.S. broadcaster, in a deal that allows the local telco to use their content on its Internet-based TVs.

The license has enabled KT to provide some 1,800 popular and some of latest American TV series, in addition to other content to be produced by the major studios in Hollywood over the next three years, a spokesperson for KT said.

KT is the first pay-TV service provider that started servicing content of the latest American TV series with no huge time difference between Korea and the United States.

“One of the key features of the partnership is that KT’s Internet TV customers can enjoy watching high-quality American TV series with Korean translation service on the bottom of a screen,” said Lee Jeong-woo, head of KT’s public relations office.

According to Lee, major TV series that are being serviced via major terrestrial broadcasters, cable TV and paid TV channels in the United States, will be available to KT’s Internet TV users two days after the launch of the content in the U.S.

KT declined to comment about the financial details such as the amount it is paying for content licensing.

“Throughout the long-term partnership with the Hollywood studios, KT could improve competitiveness in its media content business. KT will work to create new patterns of consumption in content by consumers in Korea,” Lee said.

The announcement comes at a time when KT was in talks with Netflix of the United States for another exclusive partnership for Netflix’s rich content on its Internet TV platform.

Netflix confirmed its plan to the Korean market beginning in January next year, which gives the company opportunity to increase its subscriber base.

Korea has the fastest Internet connection speed on Earth. As Netflix hopes to generate revenue by allowing local telecom companies to use their content via licensing in return for using broadband network, KT is considered Netflix’s first Korean partner, officials said.

“Neftlix doesn’t want to compete with local telecom firms. Given KT’s advantage to manage Internet TV services in the local market, chances are very high that Netflix will name KT as its key Korean business partner. KT is keen to find out demands for American TV content by partnering with Sony before making an additional decision to expand its media content business,” said a KT executive.

For example, Netflix plans to offer its content below 8,000 won as monthly charge to gain traction in Korea.