Broadcasting vs. OTT Competition: How Legacy Networks and Digital Broadcasters Redefine the Market
Terrestrial broadcast series have long been established as widely recognized TV shows, produced and broadcast through major network broadcasting stations. In contrast, Over-the-Top (OTT) services are digitally distributed streaming platforms, with global streaming giants, regional streaming services, and Wavve being leading competitors. As media consumption habits evolve, competition between network-produced series and OTT services has heightened. here Consequently, each platform is developing exclusive releases and employing adaptive strategies to stay ahead.
Differentiation Strategies of Terrestrial Dramas
Terrestrial dramas focus on providing stories with broad audience reach while maintaining traditional storytelling methods. In particular, they actively highlight celebrity performers to attract audience interest and produce narratives that resonate with a broad spectrum of viewers, thereby securing a broad viewer base. Additionally, leveraging their decades of industry presence and brand trust, they continue to present familiar content, ensuring stable viewership ratings. This allows audiences to explore different channels to engage with long-standing formats through various distribution channels.
Differentiation Strategies of OTT Services
OTT services are expanding their influence by employing approaches distinct from traditional terrestrial broadcasting. Firstly, they actively adopt unconventional narratives and experimental formats, prioritizing originality and artistry over mass appeal. Secondly, they curate tailored content that caters to individual tastes, targeting niche audiences. Lastly, they focus on producing multinational content aimed at the expanding international scene, allowing them to grow their fanbase not only in their home country but also internationally. Through these approaches, OTT services are strengthening their competitiveness in ways unlike traditional terrestrial broadcasting.
Competition and Collaboration Between Platforms
As terrestrial broadcasters increasingly enter the streaming space, competition has intensified. For instance, KBS and a long-established broadcaster operate their own OTT services, 'KBS Streaming Hub' and 'MBC Digital', respectively, providing their existing TV shows on online services. This strategy helps sustain the relevance of legacy networks while attracting new viewership. Meanwhile, the emergence of alternative digital platforms is shifting audience preferences towards more on-demand entertainment.
Conversely, streaming providers are also expanding their dominance by collaborating with traditional TV networks. Netflix has gained worldwide success with Hallyu series like the breakout survival thriller and 'Hellbound', leveraging the storytelling expertise of Korean TV networks. This synergy helps both parties leverage their advantages, fostering a richer content environment. As a result, the boundaries between network TV and streaming continue to blur.
Ultimately, terrestrial dramas and streaming platforms are both competing and working together through their respective unique approaches. Terrestrial dramas maintain established storytelling and general audience focus, whereas digital platforms provide genre-defying and internationally appealing content. As collaboration and merging between these platforms continue to expand, audiences can expect a richer and elevated content environment in the future.