Broadcasting vs. OTT Competition: How Legacy Networks and New Streaming Giants Redefine the Market

Terrestrial broadcast series have long been established as mainstream TV shows, produced and broadcast through traditional broadcasting stations. In contrast, Over-the-Top (OTT) services are internet-based streaming platforms, with global streaming giants, Watcha, and domestic platforms click here being representative examples. As media consumption habits evolve, competition between network-produced series and digital streaming platforms has become fierce. Consequently, each platform is producing exclusive releases and employing distinct strategies to stay ahead.

Differentiation Strategies of Terrestrial Dramas

Terrestrial broadcast series focus on providing content with broad audience reach while maintaining time-honored formats. In particular, they actively cast celebrity performers to attract audience interest and produce dramas that capture the interest of a wide range of age groups, thereby securing a consistent fanbase. Additionally, leveraging their long broadcasting experience and brand trust, they continue to offer traditional stories, ensuring stable viewership ratings. This allows audiences to have multiple options to engage with long-standing formats through various platforms.

Differentiation Strategies of OTT Services

OTT services are expanding their subscriber base by employing tactics distinct from traditional terrestrial broadcasting. Firstly, they actively adopt unconventional narratives and experimental formats, prioritizing originality and artistry over mass appeal. Secondly, they offer tailored content that caters to individual tastes, targeting unique fan bases. Lastly, they focus on producing multinational content aimed at the worldwide audience, allowing them to attract subscribers not only in their home country but also internationally. Through these strategies, OTT services are building industry dominance in ways distinct from legacy channels.

Competition and Collaboration Between Platforms

As legacy media companies increasingly penetrate the OTT market, competition has escalated. For instance, KBS and a long-established broadcaster operate their own streaming platforms, 'KBS Streaming Hub' and 'wavve', respectively, distributing their existing broadcast content on digital platforms. This initiative helps preserve the market presence of traditional broadcasting platforms while expanding their digital reach. Meanwhile, the emergence of alternative digital platforms is changing consumer behavior towards more flexible viewing options.

Conversely, streaming providers are also solidifying their influence by partnering with terrestrial broadcasters. A leading global streaming giant has gained massive international recognition with Korean dramas like 'Squid Game' and 'Hellbound', leveraging the high-quality filming standards of terrestrial broadcasters. This collaboration helps both parties maximize their potential, fostering a richer content environment. As a result, the lines between terrestrial and digital platforms continue to blur.

Ultimately, terrestrial dramas and OTT services are both fighting for dominance and seeking collaboration through their respective differentiation strategies. Terrestrial dramas maintain classic formats and general audience focus, whereas digital platforms provide bold and cross-border content. As collaboration and merging between these platforms continue to grow, audiences can expect a wider-ranging and enhanced content environment in the future.

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