KT, CJ ENM join forces to set up Korea’s largest streaming platform

KT and CJ ENM have decided to merge their over-the-top video streaming platforms -- Seezn and Tving -- to create the largest Korean-made video streaming platform. The merger could accelerate the growth of Korean video content, officials said Thursday.

The two companies each held board of directors meetings and decided that KT’s Seezn will be absorbed by CJ ENM’s Tving. KT Studio Genie, which holds a 100 percent stake in Seezn, will become the third-largest shareholder of the newly merged platform.

The sum of Seezn and Tving’s monthly active users are estimated to reach 5.6 million, surpassing the current No. 1 domestic streaming platform Wavve’s figure of 4.2 million monthly active users. Wavve was established in 2019 as a joint venture between SK Telecom and the country’s three terrestrial broadcasters, KBS, MBC and SBS.

KT and CJ ENM said the merger decision was made to strengthen the competitiveness of domestic media and to accelerate the growth of Korean video content.

CJ ENM also announced in a public notice that the company will acquire 1,164,509 shares of KT Studio Genie, about a 9 percent stake, for 100 billion won ($76 million).

Despite the creation of the largest indigenous video streaming platform, Netflix is expected to retain its top position in the market. As the country’s biggest streaming service, Netflix had 11 million monthly active users in June, according to market tracker Mobile Index.

By Kan Hyeong-woo (hwkan@heraldcorp.com)