Case of Kakao-Page 문화 콘텐츠 기업의 롱

Journal of Convergence for Information Technology e-ISSN 2586-4440 Vol. 10. No. 11, pp. 117-130, 2020 DOI : https://doi.org/10.22156/CS4SMB.2020.10.11.117 A Study on the Strengths of Cultural Content Company in the Long-Tail Market: Case of Kakao-Page Jeong-Woo Seo1, Hyunjun Park2* 1Student, Business Administration, Incheon National University 2Associate Professor, Business Administration, Incheon National University 문화 콘텐츠 기업의 롱-테일 시장에서의 강점에 대한 연구: 카카오-페이지의 사례를 중심으로 서정우1, 박현준2* 1인천대학교 경영학부 학생, 2인천대학교 경영학부 부교수 Abstract This study observes the case of Kakao-Page, a webtoon and web novel company, revealing the relationship between long-tail strategy and corporate competence in the cultural content industry market. This study investigated the various expansion strategies of Kakao-Page and investigated the strength of the strategy through value, rare, inimitability, and organization the method of VRIO analysis. The biggest strength of Kakao-Page is its diverse range of products ranging from 66,000, and not only does it gain merit as a long-tail, but it also becomes the core of the vertical integration and various expansion strategy. The study points out that the ability to secure a wide range of products is essential for platform content companies seeking access to the market. Also, the need for follow-up research regarding content platforms and long-tail. Key Words : Long-tail, VRIO framework, Resource-based view, Content platform, Webtoon 요 약 본 연구는 웹툰 및 웹소설 기업인 카카오 페이지의 사례를 관찰하여, 문화 콘텐츠 산업 시장에서 롱-테일 전략과 기업의 역량과의 관계에 대해서 밝히고 있다. 본 연구는 카카오 페이지의 다양한 확장 전략에 대해 조사하 였으며, VRIO 분석 방식을 통해 전략의 강점을 조사하였다. 카카오 페이지의 가장 큰 강점은 66,000개에 이르는 제품의 양이며, 롱-테일로서의 메리트를 얻게 할 뿐만 아니라, 수직적 통합과 다양한 확장 전략의 핵심이 된다. 이 연구는 시장에 접근하려는 플랫폼 콘텐츠 기업에게 다양한 제품을 확보할 역량이 필수적임을 지적함과 동시에, 콘텐츠 플랫폼 및 롱-테일에 관련한 후속 연구의 필요성을 촉구한다. 주제어 : 롱-테일, VRIO 분석, 자원기반관점, 콘텐츠 플랫폼, 웹툰 1. Introduction Cho [1] points out that the cultural content business does not have a uniform and precise The industry that provides various cultural definition, which is named in various ways information through media or produces and depending on the country and is called distributes products based on cultural-related 'entertainment and media industry' in the United content is called the 'cultural content industry.' States of America and 'creative industry' in the *Corresponding Author : Hyunjun Park([email protected]) Received August 14, 2020 Revised October 22, 2020 Accepted November 20, 2020 Published November 28, 2020 118 융합정보논문지 제10권 제11호 United Kingdom[1]. The term 'cultural content' is existing business-scientific approaches to the not a global term, but a word created arbitrarily webtoon market were sufficient to focus on the upon establishing the Korea Culture Content company's detailed differentiation policies, a Agency in 2001[2]. review of a new systematic trend is needed at Korea Creative Contents Agency(KCCA) this point in 2020. defines the cultural content industry as all This paper utilizes the value, rare, industries involved in producing, distributing, inimitability, and organization (VRIO) analysis and consuming content products, and based on from the perspective of resource-based theory. 11 industries including publishing, cartoons, Through a series of processes, this research music (including performances), games, movies, analyzes the value of resources that Kakao-Page animations, advertisements, broadcasting, has gained in expanding its influence. It will characters, knowledge information, and content show the importance of 'long-tail system' design. solutions[3]. At the same time, it presents a single direction Those Web-based cartoons and novels, for managers who want to expand influence in provided by platforms, are commonly called the cultural industry market based on the 'Webtoon' and 'Web novel' in Korea. In the early platform during the Fourth Industrial Revolution. days of service, it was created to increase traffic on portal sites and increase media companies' 2. Theoretical background profits through advertising exposure. Since then, 2.1 Platform with the growing popularity of webtoons and web novel, portal sites have expanded their Currently, the Korean cultural content business by introducing various revenue models industry’s keyword is ‘platform.’ Kim [6] defines for creators. The mainstream has been shifted the platform as a virtual market but stressed that from portal sites to smart applications, and transactions occur in smart-media spaces, free platforms that specialize in webtoons and web from physical space constraints[6]. Kim et al. [7] novels have become the trend[4]. mentioned that three things must be preceded to With the start of the Fourth Industrial form a platform: hardware which can be used as Revolution and enhanced mobile access to an instrument access the platform, a device that cultural content, the market's mainstream has enables the object of the transaction, and an crossed over to the platform. Thus, Korean interface that enables interaction, which defines webtoon providers also joined on this market the content platform as a corporate ecosystem trend of platforms. Various business models of based on the above conditions[7]. webtoon companies are being studied, mostly Cultural content platform companies provide small and diverse webtoon suppliers based on a vast market where objects can freely trade and paid billing models[5]. act as intermediaries for transactions based on However, nowadays, the market is divided into the infrastructure they have formed. It serves as two leading companies, 'Kakao-Page' and 'Naver- a kind of intermediary trade[8]. Of course, it is webtoon'[5]. These companies’ characteristic is also meant as a supplier who directly purchases that they have established a system based on the or produces cultural content using the pre-built copyright of their products while freely using infrastructure, and as a creator of the story existing research expansion strategies. While the market through the one source multi-use A Study on the Strengths of Cultural Content Company in the Long-Tail Market: Case of Kakao-Page 119 (OSMU) strategy, which creates content in different genres based on the original story of the original work[9]. At this time, killer content is emphasized for companies to earn profits. Shin [10] defines killer content as: Fig. 1. Long-Tail Market "Content that is strong enough to "lead or lead The ‘long-tail’ market refers to the right side the flow of the market to achieve the best. best of figure1, marked by arrows, generally referring return or change communication-liquid flow.[10]" to marginalized consumers who have not been noticed as marketing targets in the conventional Given that the economic value of killer market. content has been proven in prior research and 'Long-Tail' refers to a new economic that the product has many different benefits paradigm shift in which the tail part of the through OSMU, the acquisition of killer content demand curve is longer than the head part, and is significant[11,12]. the niche products that have been ignored However, due to cultural content platforms become important as obstacles that have characteristics’, such as free accessibility and distorted the market in the digital era are constant expansion of the market, opinions removed, and infinite choices are available. If differ from the existing trend: long-tail. the number of niche products increases and when the tail gets longer, each of them will have 2.2 Long-tail a smaller turnover. However, Anderson[14] In his consideration of cultural trends, Shim defines their combined sales as equal to or even [13] pointed out that the long-tail era will come better than the hit products. in the cultural content market in the future, the It is attracting attention as a market dominance of Big Name's cultural business will expansion strategy in the financial and cultural decrease, and 'mini-majors' will increase[13] contents sectors. The more accessible The market created by smartphones and non-mainstream markets are due to the platforms is very heterogeneous. The overflowing development of technologies based on the producers offer a variety of products through the fourth industrial revolution, the more value it is platform. Consumers have easy access to their as a strategy. favorite products through smart devices. Even if Long-tail strategies require prerequisites as consumers' tastes are alien to mainstream much as they bring long-term and steady profits. consumers’ trends, it is no longer a big problem. Park [15] stressed that some conditions precede The existing market was dominated by long-tail marketing especially, for a platform, Pareto's law and led by 20 percent of consumers saying that customers enough to form long-tail, leading the market, but now trend followers can multiple products to attract a wide variety of assert their tastes and desires. The market for customers, easy access, and automated systems. the bottom 80% of this Pareto law is called the After all, to become an excellent target for the 'long-tail' market. long-tail, there is a sufficient amount of financial strength and capacity to cover the 120 융합정보논문지 제10권 제11호 needs of consumers from the long-tail. a variety of strategies that are very actively used in the webtoon market at this time[22]. 3. Market status and core competitor As of 2020, the webtoon market is called the era of IP. The report describes current webtoon 3.1 Webtoon Market market as a market divided between Kakao-Page '2019 Cartoon Business White Paper' and Naver-Webtoon[23]. published by the Korea Creative Content Agency outlines three major development periods for Table 2. Comparison of user visits and page view the webtoon business[16]. Table 1 is the era of by webtoon platform according to internet traffic investigation three stages of the webtoon industry organized User Visit Page View Platform by paper[16].

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