Media/Entertainment The golden age of video content The increasing search for content Overweight (Maintain) In just a short period of time, over-the-top (OTT) services have emerged as a key platform for the global media industry. In response, both traditional media companies, Industry Report such as Walt Disney (NYSE: DIS, CP: US$97.06) and Time Warner (NYSE: TWX, CP : US$100.47), and new media companies, such as Netflix (NASDAQ: NFLX, CP : September 5, 2017 US$179.00) and Amazon (NASDAQ: AMZN, CP: US$979.47), are now battling to source large amounts of content from outside providers. As media companies broaden their geographical footprint and turn to content to differentiate their platforms, licensed content, in addition to self-produc ed content, are becoming increasingly important. For example, Netflix is planning to spend W8tr on content alone next year. In our view, Mirae Asset Daewoo Co., Ltd. global competition to license content will play out for quite some time. [Media /Entertainment/Leisure ] We believe the battle for content will benefit video content producers. The proliferation of accessible OTT platforms has created new sources of content demand, Jeong -yeob Park presenting opportunities across different formats, sizes, and targets. We expect +822 -3774 -1652 content licensing to grow and a more diverse range of conten t to attract traffic. We
[email protected] view this as another positive change for Korean content producers, which saw increased bargaining power following the introduction of general programming cable channels and the beginning of content exports. We believe some paralle ls can be drawn between the current situation and the 1990s, when the programming of externally-produced dramas was institutionalized in Korea.