NEWS & REPORTS
- Korean Film News
- What could allow the US entertainment industry to prevail?
- by Cine21 / Aug 25, 2023
Moving (Image: The Walt Disney Company)Concerns about pay TV (which, unlike in Korea, is still heavily dependent on cable and satellite transmission) and OTT platforms are mounting as U.S. screenwriters and actor unions continue their strike. The blow to pay TV is particularly significant since it makes it nearly impossible for linear TV broadcasters to continue to offer a full schedule of programs around-the-clock; using reruns can only get you so far.
In a market that was already trending downward, paid customers plummeted to half of the total 130 million households registered in the US during the second quarter of 2023, and these losses are only accelerating. Over 4.2 million customers cut the cord in the second quarter alone.
But does this imply that all the subscribers who left pay TV providers switched to OTT platforms? It's difficult to say, in parts because it is believed that those who are the most likely to view content on streaming services were already subscribers, considering that US consumers were already spending more on streaming services than on paid TV.OTT platforms are also facing severe rivalry between themselves, which necessitates a steady supply of unique content to keep existing users from leaving. If the availability of fresh content diminishes, viewers may be less inclined to shell out money for another month of membership. This is why streaming services are hoping that the strikes will be short-lived.During The Walt Disney Company's second-quarter investor meeting, current CEO Robert A. Iger stated that, while streaming services remain Disney's future, the period of seeking quick expansion in this line of business is now over. Disney has lately adopted a new strategy with subscription fee hikes in the United States in order to get back to profitability, despite the fact that they are also battling with a content drought.Could the success of Moving, like the success of Korean programs for Netflix, have a beneficial influence on Disney's bottom line? As production on new shows is halted owing to the ongoing strikes, the US entertainment companies are debating whether the Asian market will allow them to gain an advantage.Just as Korean content turned the tide for Netflix, could the success of Moving also have some positive impact on Disney's bottom line? As production for new shows is at a standstill due to the ongoing strikes, the U.S. media market is debating whether the Asian market will allow them to prevail.by Kim Jo-han (Media Guy·New ID Business Development Director)
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