[K콘텐츠, 일그러진 지갑下] Korean OTT pushed by Netflix… “Government support, but not interference”

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Expert Suggestion, “Domestic OTT support is necessary, but… Government intervention should be avoided.”

It is difficult to secure IP and raise production costs… to provide tax support
Strong response to illegal streaming services such as Noonu TV
Diplomatic and trade support is also needed for local companies to advance into the global market.

A warning light has been turned on in the domestic online video service (OTT) industry. Companies fell into the red as their operating losses expanded over time, and the prospect of further decline is dominant in the future. Content companies are trying to revive themselves by producing killer content, but there are concerns that they will fall into long-term stagnation due to Netflix’s offensive and various regulations.

Accordingly, experts unanimously say that the government’s support is more urgent than anything else for the growth of the domestic content industry. In particular, it is argued that government policy support, such as tax support, solving problems with illegal streaming sites, and easing various regulations, should be added. Accordingly, Etoday listens to the voices of experts to find out the problems and solutions of the domestic content industry.

Director Noh Chang-hee “It is important for local OTTs to secure IP… Government support is desperately needed.”

Noh Chang-hee, director of the Digital Industry Policy Research Institute, emphasized that it is important for Korean content companies to secure IP, and that government support is required for this. Director Noh said, “Collaboration between content companies and Netflix has become inevitable, but from the standpoint of Korean content providers, we must collaborate in a way to secure legitimate IP.” It will be difficult, and what is needed at this time is government support.”

At the same time, Director Noh emphasized that it is not desirable for the government to intervene in the IP of production companies. He said, “We need a government policy that can entice business operators to secure IP. . Then, he repeatedly emphasized support, saying, “In the case of small and medium-sized production companies, we can greatly expand support.”

It also claimed government support for OTT operators. Director Noh said, “What we must not forget is that it is not common for domestic operators to rank second or third in market share, except for Netflix,” and added, “We need to reduce the burden on our operators.” He said, “We need government support such as tax support. First of all, the urgent issue is to solve the Nunutiv crisis,” he said. “The government is said to be responding, but it is necessary to expand the response plan to solve the difficulties that platform operators have.”

Professor Kim Yong-hee “We need government support, but no intervention such as regulation is necessary”

Dongguk University Graduate School of Media Professor Kim Yong-hee (open route specialist) emphasized the importance of ‘investment’ in the media content industry. Professor Kim said, “The government must adhere to the concept of ‘supporting but not interfering. We need support,” he said.

In particular, there is a perception that the media industry is an incomplete investment destination, and it was emphasized that institutional investment support should be provided to change the perception to a ‘safe investment destination’. He said, “For example, a tax deduction is required for platforms or contents,” and “only when an environment is created where profits can be secured stably and reinvested is created, it can become a system that continuously creates and distributes content.” said.

In addition, it is of the opinion that the government’s intervention is unnecessary regarding the cost of network use, which is currently being disputed between Netflix and SK Broadband. Professor Kim said, “As a result of individual negotiations between the two operators, there is no need to get involved in this matter whether or not network usage fees are added.” When a law or system is passed, external effects or economic effects must be strictly analyzed.”

He continued, “If the bill is made, Korean operators should not be harmed by reverse regulations in the future.” It can’t be done, and it can’t be made cheaper only for Korean operators,” he said.

Dr. Lee Jong-gwan “The burden of production for OTT operators suffering from deficit must be eased”

Dr. Lee Jong-kwan at the law firm Sejong said, “Among the OECD countries in the world, Korea and Japan are the only countries where OTT operators defend 50% of their market share.” It is a situation where we cannot accept their regulation or policy direction.”

Dr. Lee said, “The production burden of OTT operators, who are in a deficit, must be alleviated in some way.” He said, “For example, capital procurement for production must be carried out smoothly by expanding production-related funds.”

Support for manpower was also emphasized. He mentioned, “Korea is doing well in content production, but it seems to be polarizing to some extent, so creative talents, writers and planners must continue to be nurtured and nurtured.” He also suggested the need for deregulation. He said, “There are many policies to support OTT, but the media market does not go well just because OTT is supported and activated. It is important how traditional media and OTT collaborate,” he said. “We need a structure to collaborate so that we can create a virtuous cycle with legacy through deregulation on legacy.”

Dr. Lee emphasized that the most important thing is the market expansion policy. He said, “It is not easy for individual operators to enter the global market. Financial support for global expansion and support at the level of diplomacy and trade are also needed,” he said.

Professor Choi Kyung-jin “No government intervention… It is possible to specify the possibility of dispute in advance.”

Choi Kyung-jin, a professor of law at Gachon University, emphasized the need to minimize political intervention, saying, “network usage fees should be driven by the logic of the market.” It is argued that compromise is not possible because values ​​and economic logic issues collide while accessing public goods or contents. He presupposed that “it depends on the market situation,” but said, “If a bill is passed in the future, I think it is okay to specify in advance the areas where disputes may arise.”

Regarding the controversy, Professor Choi said, “Both CP and ISP have to make some concessions.” should be made,” he said. In addition, “It is not desirable to say that if a CP imposes a network usage fee, it will pass the cost on to the consumer.” If you pay for the network usage, the current conflict will be resolved from the perspective of a fair competition market.”

Lastly, he said, “If you pay network usage fees, you can recover from the perspective of a fair competition market.” It will not be easily uploaded,” he diagnosed.

Cho Seong-jun, Lim Yoo-jin