By Yoon Sung-won
KT said Monday it is collaborating with CJ E&M to provide video content for its mobile television service.
CJ E&M has provided its mobile multi-channel network (MCN) service named “DIA TV” for KT’s Olleh TV Mobile since late last month. With an MCN platform service such as YouTube, users can watch video content uploaded by individual media producers.
“We believed that a mobile television service needs to diversify content in order to compete with other entertainment in the mobile environment such as webtoons and games,” a KT spokesman said.
The move came as SK Telecom, Korea’s largest mobile carrier, is close to acquiring the nation’s leading cable television operator CJ HelloVision. Although expectations are that KT will remain the top paid-television service provider even after the acquisition is completed, the expansion in SK Telecom’s content business may threaten KT’s presence in this sector.
As well as content expansion, the telecom company said it had opened its mobile television service, which used to be exclusive for KT subscribers, to users of other carriers ― SK Telecom and LG Uplus ― since early this month.
“Whereas Olleh TV Mobile was like a part of membership benefits of our subscribers, we have lifted the barrier for other carrier subscribers to allow them to use diversified mobile content of our mobile television service,” the spokesman said.
The popularity of personal video content, or “me-media,” has been growing rapidly based on the penetration of platform services such as YouTube and Twitch. In Korea, personal broadcasters such as Na Dong-hyun, better known for his nickname “Great Library,” have drawn about a million viewers to the online MCN service Afreeca TV.
CJ E&M launched DIA TV in May as an upgrade to its MCN platform business, aiming at discovering a new business model, expanding platform business and helping personal content creators go global.
Meanwhile, KT denied claims that the MCN service was scheduled to be provided on its Internet protocol television (IPTV) service Olleh TV early next year.
The KT spokesman said the company considered the personally created video content as more suitable for mobile devices than large television screens.
“We do not plan to provide the DIA TV content through Olleh TV as of now,” he said. “As a full-scale television service, we believe Olleh TV already has enough high-quality content on more than 200 channels. “We do not think the IPTV service is in an immediate need for MCN content.”