Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Is it too late for Tving-Wavve merger to unseat Netflix in Korea?
Tving's mobile homepage / Captured from Tving homepage
By Park Jin-hai
In response to the Korea Fair Trade Commission's (FTC) June 10 decision to conditionally approve the merger of Tving and Wavve, experts have offered mixed reactions with some casting doubt on whether the move can seriously unseat Netflix, currently dominating Korea’s streaming market.
While some see the merger as a strategic move to enhance competitiveness by scaling up, others remain skeptical whether it can challenge Netflix’s dominance in Korea.
"The merger feels overdue. Even if it happens now, I question how much impact it will really have. For the merger to be effective, content exclusivity is necessary, but that has already been broken — SBS recently signed a deal with Netflix. There’s no guarantee that MBC or KBS won’t do the same in the future," said Yoo Geon-sik, an adjunct professor at Sungkyunkwan University’s Graduate School of Media and Culture.
According to data analysis platform Mobile Index, Tving had 7.16 million monthly active users in May, while Wavve recorded 4.13 million. Their combined user base of 11.28 million still falls short of Netflix’s 14.5 million.
Yoo and other industry insiders remain doubtful that the merger alone can significantly alter the landscape, even with strategic effort.
The approval allows for the interlock of executives between the two companies. Specifically, CJ ENM and its subsidiary Tving will be able to have five of Wavve's eight directors, including the CEO, and one auditor serve concurrently as their own executives or employees.
A promotional photo for local streaming platform Wavve / Courtesy of Wavve
A producer who supplies content to Netflix stressed that for Korean streaming services to effectively compete against Netflix, high-quality original content is urgent. While funding is crucial for this, they believe the merger faces too many obstacles to fully address this need.
"If the government provides Tving vouchers or something similar, it might increase subscribers in the short term. But if that doesn't lead to producing high-quality content in the long run, then it's ultimately pointless and just a waste of money," the producer said on condition of anonymity.
"As an industry insider, I believe making great content and getting the right people to judge its quality and budget is key. But honestly, it all comes down to money. That's why I don't think it'll be easy for the merged Korean streaming service to truly compete with deep-pocketed Netflix," he added.
Tax support, ad-supported streaming seen as path for growth
Noh Chang-hee, head of the Digital Industry Policy Research Institute, offered a more optimistic perspective on the merger’s potential.
"If the two operators combine, a certain level of economies of scale will be achieved. There's an expectation that an operator with significant competitiveness can emerge in Korea. Even if it can't immediately grow into a global streaming platform, an operator with long-term potential has been born," Noh said during the first policy talk under the new Lee Jae Myung government at the National Assembly, June 19, aiming to nurture a domestic streaming platform.
Noh also stressed the need for stronger policy support, particularly in the form of tax incentives, to reinvigorate the struggling domestic industry.
"The media content sector is generally not recognized as R&D. Compared to other countries, Korea's tax support system for streaming content and media is, unfortunately, rather modest," he said.
"If the focus shifts to a regulatory framework, it could dampen the willingness of struggling businesses to invest. I hope we can maintain the current promotion-oriented approach and create an environment that encourages investment through various support measures, such as the creation of funds."
Jung Han, CEO of the media outlet K EnterTech Hub and adviser to the U.S.-based Korean content streamer KOCOWA, stressed the importance of platforms using FAST (Free Ad-supported Streaming TV) as an independent global expansion channel to complete the "mega K-streaming ecosystem."
FAST is a service that allows viewers to watch video content for free with ads via smart TVs and other devices. He claimed that this service has emerged as a central driver in the global spread of Korean pop culture.
The K-FAST Alliance, launched by the government in April to strengthen the domestic streaming market, includes participation from global TV manufacturers such as Samsung Electronics and LG Electronics, major broadcasters and AI dubbing tech companies.
"Usage of FAST channels has exploded, especially in the Asia-Pacific region," Han said, citing Amagi's January data, where watch time on FAST channels in the Asia-Pacific region increased by over 130 percent compared to the same period last year.
"The K-drama craze among older generations in Japan, the mobile K-pop culture in China and the K-variety show syndrome in Southeast Asia are all spreading through FAST. If YouTube and FAST, both ad-supported free streaming platforms, can gather K-content (including K-pop, dramas and variety shows) fans, then premium K-content streaming can become successful," he said.