earticle

영어

The aim of this paper is to analyze Korea Telecom’s media business. For this, a theoretical logic is approached and it analyzes KT’s media business activities chronologically in conjunction with the related type of the business model innovation. KT’s first stage of business model innovation is the launch of satellite TV, but it suffers from fierce competition, even if KT tries media activities like pseudo-interactivity and HD quality. KT’s second stage of business innovation is IPTV. As KT has the problem of key channel sourcing, KT’s third stage of business model innovation is the launch of hybrid platform focusing on analog cable TV market, which results in its earnings and pay TV “monopsony” in Korea. During this time, KT plans to prepare for new competition with global players like Google, Apple, and Netflix. In order to utilize external resources like User Generated Content (UGC), in fourth stage of business model innovation KT launches ‘Open store’ on VOD section of IPTV and gives software development toolkits (SDKs) to long tail content creators. Based on the hybrid platform, KT utilizes not only the technical advantages of digital TV, but also invests in UHD quality content and channels. It is the fifth stage of integrated business model. Lastly, KT utilizes its previous business models and leverages its strong bundling power in front door to maintain the co-opetition (cooperation + competition) relationship with Over-The-Tops (OTTs).