ICT firms battle for intellectual property rights in content biz

Naver CEO Han Seong-sook, Kakao Chairman Kim Beom-su and KT CEO Ku Hyeon-mo / Courtesy of each company

By Kim Bo-eun

Tech firms are zeroing in on securing intellectual property rights in diverse forms as they seek to scale up their content lineup amid increasing demand for digital-based entertainment.

Content providers such as Netflix are thriving as the COVID-19 pandemic drags on and people are spending more time at home. This has prompted non-conventional players to set their sights on new opportunities and they are investing to set up new entities in the sector.

Naver recently announced plans to acquire the Canadian social storytelling platform, Wattpad, as part of a drive to scale up its content business.

The portal giant will buy Wattpad, the world's largest platform for writers and readers, with more than 90 million users, for $600 million.

"Competition is heating up in the global market for over-the-top (OTT) media services and demand is growing for good intellectual property. It is important to secure high-quality intellectual property and platforms for webtoons, while web-based novels enable connections with diverse content creators," Naver's CFO Park Sang-jin said in a conference call last week announcing the company's fourth-quarter 2020 earnings.

"The acquisition of Wattpad is a strategic decision to obtain a substantial share of the global market for intellectual property that is becoming increasingly important," Naver CEO Han Seong-sook said. "Based on quality intellectual property, we will seek various new business opportunities."

Naver's rival Kakao said last week that it is integrating two of its content units ― KakaoPage and KakaoM ― into a new entity called Kakao Entertainment to strengthen its business and make inroads into overseas markets.

KakaoPage holds intellectual property rights to 8,500 original stories, including webtoons and web-based novels. It has a presence in 10 countries including the U.S., Japan and Southeast Asia.

KakaoM is involved in music distribution, music content investments and production, entertainment management and video content production and distribution.

Kakao said the new entity, equipped with business capabilities in intellectual property and platform networks, will make forays into overseas markets.

Telecom firm KT said last week that it has set up a new unit, KT Studio Genie, which will be in charge of its media content business.

KT currently has multiple affiliates involved in the business. They include its webtoon unit Storywiz, music service provider Genie Music, OTT service provider Seezn and Sky TV with eight channels offering TV shows and sports programs.

KT Studio Genie will serve as a control tower for these units and give the telecom service provider a chance to become a global player in the media business, the company said.

KT CEO Ku Hyeon-mo has revealed plans to transform the telecom service provider into a digital platform company.