Media shares climb on Netflix momentum

By Jhoo Dong-chan

Share prices of the nation's media shares are gaining momentum as OTT providers, such as Netflix, have emerged as the centerpiece of the global media platform market.

OTT firms refer to content providers that distribute streaming media as a standalone product directly to viewers over internet, bypassing telecommunications, multichannel television, and broadcast television platforms that have traditionally acted as major content providers.

Netflix announced last week it posted a surging operating profit of 520 billion won ($460 million) in the first three months of the year, record high quarterly earnings beyond the market outlook of $410 million.

Despite the intensified competition following a series of global media giants' entry into the market, Netflix managed to attract 139.3 million subscribers in December 2018.

The recent Netflix original “Kingdom” has attracted more subscribers especially in the Asian market and the platform will invest more money in Korean media companies to release other exclusive shows soon.

Following Netflix's lead, latecomers such as Amazon Prime Video and Disney said they will publish their own original content for the Asian market.

Youtube Premium has already attracted a sizable number of subscribers thanks to its recent live documentary show featuring seven-member Korean boy band BTS.

“A series of Korean programs, including the Kingdom, have proven their quality in the global market. More OTTs will invest money to produce similar shows for their platforms,” said Eugene Investment & Securities researcher Han Sang-woong.

Share prices of the nation's media and TV show content producers enjoyed a huge leap in April.

Huayi Brothers Korea enjoyed a 14 percent surge in its share price between April 1 and 19 while share price of JContentree, the production company for “Sky Castle,” jumped 7.8 percent in the period.