Streaming services combined subscriber bases while freezing prices under regulatory pressure. Webtoon publishers transformed anti-piracy operations from cost centers into strategic advantages. And game developers navigated stricter loot box rules while claiming international awards and closing major acquisitions.
1. Competition watchdog approves TVING-WAVVE merger with price freeze attached
South Korea's competition authority cleared the merger between streaming platforms TVING and WAVVE in June, but attached conditions requiring the companies to hold subscription prices steady for a set period.The decision reflected regulators' attempt to balance industry consolidation against consumer protection. Analysts said the message was clear: build scale to compete globally, but don't pass the costs to users.
The streaming sector has burned cash for years as content spending spiraled into a race that benefited viewers but devastated balance sheets. The merger signaled a strategic pivot away from duplicate investments toward leveraging combined subscriber numbers for better content licensing deals.
2. Legal merger stalls, but companies launch joint subscription to test market
The formal merger process hit delays over shareholder negotiations and regulatory procedures.Rather than wait, TVING and WAVVE rolled out a combined subscription package on June 16 that gave users access to both platforms.
The move captured the year's broader dynamic: regulatory and corporate processes take time, but consumer-facing products can launch immediately. The joint pass went beyond promotional tactics, effectively creating an integrated user experience before legal structures caught up. When the full merger closes, the real test will be integrating content libraries, pricing tiers and recommendation algorithms into a seamless interface.
3. Netflix raises prices in South Korea as ad-tier hits 7,000 won
The timing put pressure on local platforms just as they sought relief through consolidation. The move also challenged the assumption that ad-supported streaming would remain budget-friendly.
Industry observers interpreted the price increase as Netflix setting a new floor for the entire market. Higher average revenue per subscriber funds better content, which drives subscriber growth, completing a cycle that Netflix bet would lift all players.
4. TVING debuts branded collection inside Disney+ Japan in distribution experiment
TVING launched a curated section within Disney+ Japan in November, marking a new approach to international expansion.Rather than building standalone services abroad or simply licensing content, TVING secured dedicated shelf space inside an established platform.
The model represented a middle path between direct market entry and content supply deals. It gave TVING brand visibility and curation control without the overhead of launching infrastructure. Whether other platforms replicate the approach across different markets remains an open question.
5. Disney invests in WEBTOON, launching joint comics platform
The deal flipped the traditional relationship between webtoons and global entertainment. For years, Korean webtoon platforms served as IP farms for Hollywood adaptations.
This partnership positioned webtoons as primary distribution channels in their own right. Disney's willingness to invest validated webtoons not as source material awaiting adaptation, but as standalone consumer products capable of monetizing IP directly.
6. Naver WEBTOON adds short-form video with 'Cuts' feature
WEBTOON Enetertainment's Naver WEBTOON launched "Cuts" on Sept. 1, expanding beyond scrollable comics into user-generated video content designed for Gen Z consumption patterns.The feature lets creators turn webtoon panels into short clips optimized for social sharing and algorithmic distribution.
The format shift addressed retention and discovery challenges. Short videos spread faster through recommendation engines and lower barriers for new readers. Competition among webtoon platforms now extends beyond content catalogs to feed algorithms and viral distribution.
7. Kakao Entertainment blocks 240 million piracy incidents as enforcement becomes core capability
Kakao Entertainment reported blocking 240 million instances of illegal content distribution globally in the second half of 2024, according to its anti-piracy white paper.Piracy scales alongside market growth, with illegal sites copying and redistributing content faster than legal teams can respond.
The company has shifted enforcement from reactive cleanup to integrated operations combining watermarking technology, automated takedown systems and cross-border legal coordination. Platform competitiveness now depends as much on anti-piracy infrastructure as content acquisition.
8. Kakao shelves restructuring plans for entertainment unit
Kakao explored restructuring options for Kakao Entertainment in the first half of the year, including potential stake sales or a separate listing, before abandoning the discussions in August.The reversal suggested that near-term capital raising prospects had dimmed.
Kakao Entertainment bundles webtoons, web novels, music and video production under one roof. That scope requires constant capital for original content, IP acquisitions and international marketing. Major funding events would directly accelerate content investment and global expansion.
The shelved plans underscored how content companies remain vulnerable to shifting capital market conditions and investor sentiment.
9. Loot box rules shift focus to liability and damages
Gaming companies confronted a fundamental change in regulatory enforcement around loot boxes this year.From Aug. 1, the burden of proof shifted to operators, requiring them to demonstrate compliance with probability disclosure rules. Penalties expanded to include civil liability with potential triple damages.
The rules went beyond simple disclosure requirements. Companies had to overhaul data retention, logging systems and dispute response protocols. Compliance infrastructure became as critical to live service operations as content updates.
10. Foreign game operators face new accountability as domestic awards and acquisitions pile up
The requirement formalized South Korea's approach to holding global platforms accountable under local rules.
Meanwhile, Korean publishers extended their global reach through both recognition and acquisitions. Embark, a Nexon subsidiary, won Best Multiplayer at The Game Awards in December for "ARC Raiders." Krafton announced plans in June to acquire Japan's ADK, connecting gaming IP to advertising and animation production.
The moves illustrated an industry transformation from game development to full IP management across media formats.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Copyright ⓒ Aju Press All rights reserved.
