Contents Industry Shows Strong Growth with Exports of US$3.8 Billion
Contents exports are expected to increase by 14% this year owing to the “digital Korean wave” and market diversification.
The young “G20 generation” will lead a new culture in contents consumption with SNS. The competitive landscape in the contents industry is expected to change with the government issuing new licenses for multichannel TV program providers, and contents production is expected to get more diversified and large-scaled as companies target the global market.
The Korea Creative Content Agency (CEO Lee Jae-woong) announced the “Seven prospects for the Korean contents industry in 2011” where it predicted exports of killer contents, such as games, TV dramas and music to reach US$3.8 billion this year, a 14% increase over last year. The profitability of “Korean wave” contents has improved greatly with royalties increasing by 100%, thanks to the success of girl groups in the Japanese market, including Girls’ Generation and Kara.
The competitive landscape of the contents industry, which had been largely divided between broadcasters and telecommunications operators until now, is expected to change with multichannel TV program providers entering the picture. It is expected to become a three-way competition among comprehensive media groups (three public TV networks, MSO, telecommunications operators), contents production companies (drama production companies, game developers, music production companies), and multichannel TV program providers (Chosunilbo, JoongAng Daily).
Contents production will become more diversified and grow in scale as companies seek to enter the global market. 3D contents, in particular, are expected to increase rapidly, and more 4D theaters are expected to open. The widespread use of smart pads is expected to spur the growth of the e-book market.
Source: Heo Jeong-yun @ etnews.co.kr