Will Coupang Be The Korean Version Of Amazon With Its New OTT Platform, Coupang Play?
FYI) Coupang is one of the largest South Korean e-commerce companies founded in 2010. Recently, Coupang acquired assets of Singaporean streaming service HOOQ to form the nucleus of its streaming service named Coupang Play. Coupang had its IPO on the New York Stock Exchange on 11 March 2021
With Coupang's successful debut in the U.S. stock market drawing keen attention at home and abroad, a lot of attention is also focused on how Coupang's OTT (online streaming service) “Coupang Play” will be developed. It is catching a lot of attention because it is going the same path as the Amazon Prime service.
Although its presence is small in many ways compared to Prime Video service, as it has just been launched for three months, it could be a "new weapon" that will boost corporate value given Coupang's recent momentum just like Amazon Prime has taken Amazon's value to the next level.
Coupang Play has been available to members of Coupang 'Wow Membership' since December last year. It is a similar system to Amazon that grants Prime Video access to its 'Prime Services' members. Coupang Wow membership fee is less than 3 dollars (KRW 2,900) per month. It has enough price competitiveness compared to other OTT services ranging from USD 6 to 9 dollars (KRW 7,000 to 10,000 won) depending on the number of lines and quality.
Coupang earlier said in a press release when it was launched in December, that it plans to release content that can only be viewed in Coupang Play sequentially. Earlier this month, Kim Sung-Han, general director of Coupang Play mention that now they will discover various genres of content to strengthen content competitiveness and provide differentiated services.
Some people did point out that there is a lack of content as it has not been long since it was released. OTT companies' competitiveness depends on how popular or differentiated content they have. And what is needed to secure content is funding.
This is why Coupang is expected to focus on securing content at a fast pace as it has more than originally expected financial power through the listing of the U.S. stock market.
Coupang Play's decision to play a secret card earlier this month seems to have nothing to do with this view. Tottenham Hotspur's English Premier League game, where Son Heung-min, one of the most popular Korean football players is playing, is scheduled to be broadcast live. It is also uploading highlights of about six other teams' games per round.
Some interpreted that Coupang Play might think of sports as killer content.
Industry experts say that for media and commerce to create synergy, subscribers should be maintained through content or media, and content should be able to attract customers to purchase.
As the development of new business models collaborating with various media content is rising as new development opportunities in various industries, interest in producing competitive content is expected to increase further. In particular, these days, when the diversification of content platforms is intensified, specific content production and content platform onboarding strategies will need to be more specific.