Rise of streaming media

By Bae Eun-joo

The English dictionary defines “ubiquitous” as “existing or being everywhere, especially at the same time” or “omnipresent.”

This description applies to the information society that the Korean government has been pursuing since it announced the vision of “U-Korea,” a plan to achieve “ubiquitous communications” across the country in 2004.

Related ministries and leading Korean IT companies set up the Ubiquitous Dream Hall in Gwanghwamun, Seoul, to showcase and promote their nucleus technologies and products.

Among the planned “ubiquitous” services were internet, mobile, digital media broadcasting and enhanced wireless broadband coverage which the government maintained would connect the nation by 2007. Apparently, the goal had been achieved as Koreans nowadays find themselves living in a wired society where mobile phones, tablets, laptops and other handheld devices dominate public discourse.

I vividly remember visiting the Ubiquitous Dream Hall some 13 years ago. The experience was like stepping into a science-fiction movie as the exhibition was modeled after a home filled with advanced technologies. When I entered the exhibition hall, the entrance doors opened automatically and the lights switched on without me having to push any buttons. An exhibition hall guide demonstrated how a wristwatch worn on the arm could recognize the homeowner’s voice and activate the home automation system. For instance, if I said, “Turn on the TV” or “Lower the volume,” the TV of the future would recognize my order and carry it out on the spot.

A small built-in screen on the refrigerator would list the food items stored inside and let the owner know what groceries needed to be purchased and what food expires on what date. Not only at home but also at a restaurant or cafe, a touch screen would take my order and a robot would serve me.

The advances in telecommunication and vehicular technologies were demonstrated with digital screens installed at every bus stop which provide information on bus location and traffic congestion. This technology was applied years ago in Korea and is currently available for real-time monitoring. Mobile equipment with game functions and movie steaming services were also introduced as state-of-the-art IT devices.

Recently, “Okja,” a movie about a “super pig,” by Korean director Bong Joon-ho, debuted on the world’s largest streaming service, Netflix. The $50 million movie produced by Netflix instantly met with a rocky start. The audiences booed it at the movie’s premiere at the Cannes Film Festival in May when the Netflix logo appeared on the screen. The French festival raised concerns whether movies primarily released on streaming platforms were legitimate for competition. Shortly, it came back with the answer, “No.” Cannes announced cinematic works with scheduled theatrical releases in France would only be eligible for competition starting next year.

I found the decision a little disappointing as the prestigious international festival seemed too conservative and lagging behind the changing movie-consuming paradigm. On top of that, “Okja” was met with more adversity when Korea’s major multiplexes refused to screen it.

The Korea Film Council said over 300,000 viewers have so far watched “Okja” on the big screen currently shown at fewer than 100 small theaters nationwide for an open run. All this hoopla may seem like a blow to the streaming service at first glance. But it is hard to deny that many established exhibitors see Netflix feature films as growing threats that may discourage people from going to movie theaters.

Netflix announced last month it added 5.2 million subscribers between April and June, its largest quarterly increase. Statistica, a leading online statistics company, estimates Netflix has over 107.95 million subscribers worldwide, of which 51.92 million are in the United States.

The Netflix population in Korea is growing as pay TV-provider D’Live, which closed a licensing deal with Netflix, said it sold over 85,000 OTT (Over the Top) set-up boxes during the last 12 months. Since 16,100 OTT boxes were sold in June only, it is presumed the release of “Okja” contributed to the surge of Netflix subscribers in Korea. Statistica also reported the number of Internet Protocol Television (IPTV) subscribers in Korea has surpassed 14.1 million.

Neil Hunt, Netflix’ chief product officer, recently said at New York City’s Internet Week conference that people will be exposed to 48 million TV channels by 2025. Personalization technology will enable viewers to make “one or two suggestions that perfectly fit what they want to watch now,” he said. Hunt cited the innovation in internet-connected TV will lead to everyone owning a smart TV in some eight years. This means a battle is brewing among cable companies, internet TV providers such as Netflix, and tech giants such as Google and Apple, as well as TV manufacturers.

Netflix already dominates the global market for streaming movies and TV shows on the internet and is expected to expand its influence significantly in Korea.

The rise of streaming media predicted at the “ubiquitous dream” I saw over a decade ago has been realized. Instead of boycotting Netflix-invested content, we need to accept the diversifying market and keep up with the changes.