Seoul, South Korea - The collaboration between CJ ENM and Samsung TV Plus in the Free Ad-Supported TV Streaming (FAST) market represents an evolving strategy in the global media landscape.
Their joint efforts to capitalize on the growth of the Smart TV sector and leverage data-driven insights illustrate the essential changes required for media companies to thrive in a digital world.
Why It Matters:
This alliance between CJ ENM and Samsung represents a transformative strategy in content distribution and exemplifies the potential of strategic partnerships in the modern media landscape.
It demonstrates a forward-thinking approach that leverages data insights, viewer preferences, and collaborative innovation, setting a precedent for the media industry's future in South Korea and beyond.
The Key Points
- CJ ENM's expansion strategy: As the head of the content distribution strategy, Eunhye Park directs CJ ENM toward the emerging FAST market. This move coincides with the increasing global popularity of South Korean pop culture, providing a stable platform for growth.
- Samsung TV Plus Partnership: The partnership with Samsung TV Plus, a leading global FAST service, opens new avenues for content distribution. Samsung's existing market dominance provides a fitting opportunity for CJ ENM to enhance the viewing experience and tap into advertising revenue streams.
- Smart TV market growth: The smart TV sector, which will account for 92% of total TV shipments by Q1 2023, has catalyzed FAST's growth. Samsung TV Plus, which offers more than 2,000 channels, recorded three billion hours of cumulative viewing time in 2022.
- Revenue Outlook: The global FAST model has experienced a 20-fold increase in revenue between 2019 and 2022. Revenue is expected to triple to $12 billion between 2022 and 2027, demonstrating the attractiveness of this market.
The Big Picture
The partnership between CJ ENM and Samsung TV Plus underscores the convergence of technology and media in a rapidly changing landscape.
The need for innovation in content distribution channels drives their alignment in the FAST industry.
By partnering with a dominant global player in the TV market, CJ ENM aims to capitalize on the growing trend of smart TV usage and the success of free ad-supported content.
Unlike traditional over-the-top (OTT) streaming platforms, FAST's model provides free access through Internet-connected smart TVs.
The success of this model, with revenues expected to reach $12 billion by 2027, has allowed companies like CJ ENM to invest in this thriving ecosystem.
The synergy between CJ ENM and Samsung TV Plus also indicates a more significant shift in media consumption habits.
Reports predict that Samsung TV Plus' monthly active users will grow to 58 million by 2027, driven by the growing popularity of smart TVs.