[On-Site] Choi Joo-hee shows interest in Japanese OTT Uninext, seeks ways to monetize TeeVing.

[Business Post] Tving, the leading native online video service (OTT) in Korea, led by CEO Choi Ju-hee, seems to be learning from the successful business model of Japan’s OTT platform U-NEXT.

Despite having the most expensive subscription fee in Japan, U-NEXT ranks second in subscriber numbers, following Netflix. It is the only Japanese OTT platform currently making a profit.

Some believe that U-NEXT’s success could be beneficial to Tving, which is planning to increase its subscription fee on December 1st.

The ‘2023 International OTT Forum’ was held at the Ambassador Seoul Pullman Hotel in Jung-gu, Seoul, on the 16th.

During the presentation by Tenshin Tsutsumi, CEO of U-NEXT, CEO Choi was seen constantly taking notes. This was when Tsutsumi was explaining U-NEXT’s business model and subscription fees.

U-NEXT’s subscription fee is the most expensive in Japan, at 2189 yen per month (approximately $19).

Despite the high subscription fee, Tsutsumi explained that U-NEXT leads Netflix in terms of monthly active users (MAU) and usage time.

The reason for securing a large number of subscribers despite the high subscription fee seems to be due to the combination of various services.

Subscribers who pay a monthly fee of 2189 yen receive 1200 points. These points can be used to buy movie tickets, pay-per-view content, or use internet publications.

This business model is something that Tving could potentially adopt.

Tving is operated by CJENM. They could consider collaborating with CJCGV. Like U-NEXT, they could give points to subscribers, which could be used to purchase CJCGV movie tickets or use Tving’s pay-per-view content.

The ability to utilize CJCGV could be a significant advantage for Tving compared to other native OTT platforms.

The actual use of CJCGV will begin with the release of Tving’s original series, *Unlucky Day*, on the 24th.

*Unlucky Day* was first premiered at the Busan International Film Festival this year. According to CEO Choi, there was feedback from the audience at the festival expressing their desire to see *Unlucky Day* on the big screen.

Tving decided to premiere the first and second episodes of *Unlucky Day* at CGV from the 17th to the 18th.

U-NEXT is not just a platform that offers movies and dramas.

With the U-NEXT application, users can not only watch movies and dramas, but also read comic books and novels, and even stream music.

CJENM operates an entertainment agency called ‘Wake One’. Boy group ‘Zero Base One’, girl group ‘Kepler’, ‘Davichi’, and ‘Roy Kim’ are all under Wake One.

Tving could also consider integrating a music service.

CEO Tsutsumi also highlighted U-NEXT’s live concert streaming service as one of its major contents.

This service is also planned to be introduced by Tving.

In her keynote speech at the International OTT Forum, CEO Choi announced plans to live stream the ‘Street Woman Fighter 2: World Wide Log’ national tour concert in December via Tving.

The reason why U-NEXT’s business model seems appealing to CEO Choi is because U-NEXT is the only native OTT platform in Japan that is currently profitable.

Tving has been struggling with increasing operating losses, recording losses of 6.1 billion won in 2020, 76.2 billion won in 2021, and 119.2 billion won in 2022 (approximately $100.9 million).

CEO Choi has been leading Tving since June of this year, taking on the task of improving profitability.

In her keynote speech, CEO Choi introduced business diversification as the direction for Tving. The subsequent presentation by CEO Tsutsumi demonstrated that the direction pointed out by CEO Choi is likely the right one.

CEO Choi said, “We will strive for differentiation in content through business diversification and advertising plans, and we are preparing to generate various profits not only in Korea but also worldwide.”

She further explained that she sees the entry of OTT into the advertising market as an opportunity for major innovation in the advertising market.

CEO Choi also expressed her thoughts on ‘coexistence’.

She said, “I believe that the content industry is completed when platforms, production companies, and creators coexist. The role of the platform is to serve as a window that presents the results of numerous creations to the world, listens to customers, and connects them with creators.”

She also urged government departments to eradicate illegal streaming so that excellent creations and many people’s efforts are not in vain.

In conclusion, CEO Choi pledged to continue to strive for continuous coexistence with government officials and partners so that K-content and platforms can lead global success. Reporter Yoon In-sun.