Wavve Corp., the operator of Korea’s No. 2 over-the-top (OTT) media streaming platform, is eyeing Southeast Asian markets in partnership with Vietnam‘s largest media group in a strategic move to enhance profitability with Korean media content, following a loss of more than 100 billion won last year.

According to the Ministry of Science and ICT on Thursday, Wavve signed a memorandum of understanding (MOU) with Dat Viet VAC, Vietnam’s leading media group, to strengthen cooperation in OTT and digital media content, as well as intellectual property (IP). Dat Viet VAC is No. 1 OTT provider in Vietnam, with a market share of 35.9 percent in 2021, surpassing the 24 percent market share held by Netflix Inc.

The partnership with Vietnam‘s largest media group is expected to expedite Wavve’s entry into Southeast Asian markets. “We’ve agreed to collaborate with Dat Viet VAC in the areas of content investment, distribution and IP,” said the company. Previously, the local No.2 player has put more focus on the North American and Japanese markets.

According to global statistics portal Statista, Vietnam’s OTT market is expected to grow rapidly in the coming years, reaching $768.2 million by 2027, up from $467.34 million in 2022. Compared with the Korean OTT market, which already tops 1 trillion won ($769 million), the OTT market there is relatively smaller in scale.

However, it is believed to have high growth potential due to its population of 100 million with a high portion of young population that are familiar with OTT platforms. In 2022, Wavve posted 273.5 billion won in sales but suffered an operating loss of 112.6 billion won. This year, the company aims to improve profitability through its foray into the Vietnamese market.

Tving Co., the No.1 Korean OTT provider, is also eyeing overseas markets, while managing subscription cancellation rates in its home market. In 2021, Chief Executive Officer Jay J Yang said the company was eyeing business opportunities overseas, in particular in markets across Asia, including Japan and Taiwan, during a press conference held at the platform‘s first anniversary.

“We are reviewing business expansion to Southeast Asia and to the U.S.,” said an official from the platform concerning their potential moves. In 2022, Tving posted 247.5 billion won in sales, and 119.1 billion won in operating losses.

By Na Hyun-joon and Chang Iou-chung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]