what’sgoingonwith...
streaming/digital RIP DramaFever. RIP Super Deluxe. And the next question: What will AT&T/WarnerMedia do with its stake in Hooq? Korean/Asian streaming platform DramaFever just became roadkill in AT&T and its newly minted WarnerMedia’s grand plan to build a SVOD platform, anchored by HBO, scheduled to debut at the end of 2019. Another merger casualty is Turner Media’s short-form platform, Super Deluxe Studio, victim of duplication in the new portfolio. As AT&T/WarnerMedia continue to wade through products and services, the obvious next question for Asia – and the one we’re watching most closely – is what happens to Warner Bros Entertainment’s investment in Singapore-based streaming platform Hooq, which it owns with telco Singtel and Sony Pictures Television. The JV was established in January 2015. The platform now has a presence in the Philippines, Thailand, India, Indonesia and Singapore. Right now, the only answer to that question is that no one knows for sure. Singtel/Hooq’s official response is that Warner reviews each of its investments separately and that the U.S.-based behemoth is still very much on board with Hooq. Outside of that, rumours abound about a freeze on further investment in the platform by both Warner and Sony.
Hyun Park (left) and Sky Park
DramaFever’s sudden death on 16 October after nine-years came as a huge surprise to fans, some of whom had been charged their monthly
per episode. But that’s Netflix, which has skewed the market with its out-
subscriptions only days before. Many took to rival Rakuten Viki’s online
size purse. Outside of Netflix, Korean drama commands anywhere from
message boards venting about the drama-pocalypse. “I was in the mid-
US$8,000 to US$15,000+ per episode depending on the talent attached,
dle of an episode when that message popped up. I am soooo pissed!,”
and Korean rights holders have not been shy to milk every advantage.
one said. “I’m crying,” another added.
Not all of DramaFever was equally unwanted. WarnerMedia ditched
The shock announcement came six months after Warner Bros Entertain-
only the content and the brand along with about 20% of the team in-
ment named co-founders, brothers Suk Park and Hyun Park, co-heads of
volved in programming. The rest of the staffers are staying on to sup-
production and acquisitions for Korean drama TV series. The third found-
port the tech platform, which it seems AT&T/WarnerMedia like a whole
er, Seung Bak, exited in March this year, a month before the announce-
lot more than Beauty Inside, Scarlet Heart and Nirvana in Fire or anything
ment. For a while there, it looked like the company was committed to
else DramaFever programmers picked up or made.
Korean content. In their broadened roles, the Park brothers were respon-
Those most likely to benefit from DramaFever’s exit are Asian-focused
sible for acquiring and producing TV content for the Korean market, as
streaming platforms – Rakuten’s Viki platform and KCP’s Kocowa (Kore-
well as licensing Korean formats for the U.S. and importing select Warner
an Content Wave) platform, which launched in the U.S. in the middle of
Bros Television formats, such as The Mentalist, into Korea.
last year backed by Korea’s big three broadcasters, MBC, KBS and SBS.
That, clearly, was not to be. By the time the decision to axe the brand
Both have a much broader selection of Korean and Asian titles than
was made, few in the industry were surprised, especially not since AT&T
Netflix. Viki’s free-tier titles include Kill Me Heal Me (Korea, 2015), My Un-
flagged its priorities on 10 October with the announcement of its coming-
fortunate Boyfriend (MBC Korea, 2015) and All Out of Love (Hunan TV,
soon subscription OTT platform funded by, among other sources, “con-
China, 2018). Kocowa’s line up includes Bad Papa, Happy Together, The
solidating resources from sub-scale D2C efforts”.
Ghost Detective and Jang Geum, Oh My Grandma, all streaming only
Warner Bros Digital Networks, which operated DramaFever, said the
hours after their Korean debut.
decision to pull the plug was driven by business reasons (it didn’t say
All factors combined, DramaFever was operating in a more crowded
what these were), and the changing marketplace for K-drama content.
environment, with higher costs, estimates of fewer than 500,000 subscrib-
It’s true that the cost of acquiring K-drama rights has soared. Netflix,
ers paying US$4.99 a month, and, it seems, an inability to scale. As one
for instance, is said to have paid US$30 million for global rights (outside
industry observer says: “DramaFever may have been successful. But it
of Korea) for Studio Dragon’s 24-episode Mr Sunshine; so US$1.25 million
was just too small for AT&T”.
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contentasia issue six, november 2018
