OTT Platform Tving And Wavve Signed A Deal To Merge
Local streaming services Korea Tving and Wavve have signed a deal to merge. Both OTT platforms merged to become the largest domestic service to compete with the U.S. giant Netflix OTT platform. The owners of both the OTT platforms, Tving (CJ ENM) and Wavve (SK Square), signed a memorandum of understanding (MOU) on Monday, said both companies.
48.85 percent of Tving’s stake is owned by CJ ENM, and SK Square owns a 40.5 percent stake in Wavve.
Other details of the merger, like shareholders’ stake or date, have not been decided yet by companies. The deal signals the formation of the world’s largest OTT platform, made in Korea. One of the motives for the merger is to compete with the Netflix streaming services.
At present, Tving holds the second largest domestic streaming service with 5.1 million monthly active users, while Wavve streaming services are at No. 4 with 4.23 million MAU.
Netflix is the largest streaming service provider around the world and has 11.37 million users in Korea.
Before this merger, Tving merged with KT’s streaming service in December last year. This results in bringing together three services in the upcoming deal.
This move is also the second merger between domestic streaming services to increase their competitive edge against global giants such as Disney+ and Hotstar.
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