Navigating Broadcasting Challenges in the OTT Era: Opportunities Ahead

The broadcasting industry is changing rapidly due to the rise of online video streaming services, particularly OTT platforms like Netflix and Wave. Viewers are shifting away from traditional media, leading to a 4.7% decline in overall broadcasting revenue in 2023. Meanwhile, major OTT players have reported a 6.4% increase in revenue, highlighting the industry’s transformation.

The advertising market is also feeling the pressure. Broadcasting ad revenue has dropped by 19%, creating challenges for domestic broadcasters. These companies face rising production costs, which reached 5.6 trillion KRW in 2023. Competing against tech giants like Google and Meta is difficult, as these firms operate in a less regulated environment.

In response to these challenges, there is a growing call for regulatory reforms within the broadcasting industry. Broadcasters are advocating for more flexible advertising standards and fewer restrictions on product placement (PPL) to boost profitability. They also seek increased government support for content production, aiming to compete with global OTT platforms that invest heavily in diverse content offerings.

Intellectual property (IP) protection is another critical issue. Frequent disputes over rights ownership among parties involved in program production have emerged. The industry is pushing for standardized contracts and clearer guidelines to minimize conflicts and ensure fair compensation for creators.

Labor conditions in broadcasting require attention too. The heavy reliance on freelancers and external production staff often leads to long hours and unstable contracts. The current regulation of a 52-hour workweek is seen as inflexible and misaligned with production realities, contributing to inefficiencies and rising costs.

In light of these challenges, industry representatives emphasize the urgent need for sustainable solutions. They urge the government to recognize broadcasting as a strategic industry and engage in proactive communication to foster a supportive ecosystem. As the landscape continues to evolve, the demand for regulatory reforms and enhanced support for content production becomes increasingly critical.

Shows like "So-Sae-Rom," "NATURE," and "Nerd Connection" demonstrate the creative potential still present in traditional broadcasting. However, without necessary changes and support, the future of these productions remains uncertain amid the growing influence of the OTT universe.

Key Challenges for Traditional Broadcasters:

• Declining revenue due to OTT competition.
• Increased production costs impacting profitability.
• Need for regulatory reforms and government support.

Opportunities Ahead:

• Advocating for flexible advertising standards.
• Strengthening IP protection to ensure fair compensation.
• Recognizing broadcasting as a strategic industry for growth.

This article has been written by Kpopmap AI writer and while we have made efforts to ensure the accuracy of the article, there may be errors or inaccuracies.