South Korean internet portals target video sharing market

Naver and Kakao plan to boost their video-sharing services in the second half of this year to end YouTube’s monopoly in the domestic video market.

South Korean internet portals, such as Naver Corporation and Kakao Corporation, are seeking to break YouTube’s dominance in the domestic video-sharing market.

According to industry sources, on July 25, Naver and Kakao plan to boost their video-sharing services in the second half of this year. Both companies will incorporate YouTube’s strengths, including continuous play and user engagement, into their new services.

Due to YouTube’s dominance, Naver and Kakao’s video sharing services have been slow. According to a report titled “2017 OTT User Behavior Analysis” released by the Korea Information Society Development Institute (KISDI), YouTube’s usage rate stood at 33.7% the last year, up 2.7 percentage points from the previous year. The number is constantly increasing. In contrast, Naver’s utilization rate fell by 2 percentage points to 6.6% over the same period, while Kakao’s was just 1.8%.

To break the current market structure, domestic Internet portals will take various measures in the second half. Recently, Naver has greatly strengthened its video content services via blogs.

The company has unveiled a professional authoring tool that allows users to easily edit video content. It also introduced a streaming video player feature based on individual video content search and recommendation technology.

In addition, Naver will strengthen its video infrastructure by the end of August, and add a video content search function as well as a “movie editor” function which can help users easily separate voices, edit subtitles and extract still images, by the end of October.

Kakao TV has introduced “Biz Station”, a profit management platform that allows content creators to directly apply advertisements to their videos and live streams, set up sponsorship and collectively manage their advertising details. import and account. When Kakao TV users add a video channel as a friend plus in KakaoTalk, they can also view the channel’s live stream and updated video directly on KakaoTalk. Creators can secure viewers via more KakaoTalk friends.

Additionally, Naver and Kakao strive to secure diverse content. Naver seeks to secure “how-to” video content, a move that reflects the trend of video services taking on the role of search engines. To this end, Naver TV has partnered with French food start-up “Chef Club” and Japanese C Channel to provide cooking and beauty video content.

Kakao has been offering a video-on-demand (VOD) service for movies through Kakao Page since the beginning of this year. Users can now stream a free 10-minute preview or purchase content by dividing it into 5-10 minute segments. Reflecting the popularity of “snack culture,” or short-term content consumption, Kakao is pursuing a strategy to expand its users with mobile content.

An internet industry official said, “Given the current situation where YouTube has absolute market share, Naver and Kakao plan to absorb their existing users as users of video content through their platforms. The market for mobile video services will become increasingly competitive.

Shirley K. Rosa