The Story of the Tving-Wave Merger

The Path to the Summit: What Should We Be Looking At?

Everyone has probably heard the news that ‘Tving and Wave are merging,’ right? Like two great kingdoms uniting into one empire, this news excites us but also worries us. However, to truly understand this monumental event, we need to step back like climbers and take a panoramic view of the mountain we are about to climb.

Before we start this ascent, shall we first grasp the essence of this mountain with a special compass called the ‘Genius Insight Formula’? This compass consists of four lenses that pierce through appearances.

• Observation: What do we see? Before our eyes stands a massive red mountain range marked with an ‘N’ (Netflix) dominating the Korean market, while two climbers, Tving and Wave, bleed heavily from huge deficits on their respective paths. As of 2023, their combined operating losses approach 200 billion KRW. Their very survival is at stake.
• Connection: What invisible threads are there? Interestingly, climbers (CJ and KT) who once joined hands by handing over their OTT service (Season) to Tving to counter SK (Wave) are now heading separate ways, causing conflict. In 2022, KT absorbed ‘Season,’ valued at over 100 billion KRW, into Tving and became the third largest shareholder. The irony of yesterday’s alliance becoming today’s biggest obstacle—isn’t it clear?
• Pattern: What recurring rules exist? On this rugged media mountain, we find the harsh rule that ‘the bigger climber eventually takes all (economies of scale).’ The more content produced and subscribers gained, the more advantageous it becomes—a winner-takes-all game. Netflix, with 270 million global subscribers, pours over 20 trillion KRW annually into content.
• Synthesis: So what is the essence? Putting all these pieces together, this merger reveals itself not as an ambitious climb to a higher summit, but as a ‘desperate alliance climb to survive against the red mountain range.’

Now, with this compass in hand, let’s follow the giant’s footsteps and journey to the 90% mark of the climb.

Part 1: The Giant’s Map: The Climbing Route Seen from Three Different Perspectives

One event can mean completely different things depending on who, when, and where it is viewed. Let’s unfold a special map called ‘Multi-Dimensional Analysis’ and examine this massive merger mountain from three distinct angles.

Telescope of Time: The Landscape of Yesterday, Today, and Tomorrow

Let’s turn the telescope and travel through time.

• Yesterday (Past): Tving and Wave were competitors throwing stones at each other. Especially in 2022, KT forged a solid ‘anti-SK alliance’ by handing over its OTT ‘Season’ entirely to Tving to counter SK (Wave). This was not a mere investment but a blood pact against a common enemy.
• Today (Present): Facing the threat of survival, there are no eternal enemies or allies. When CJ (Tving) joined hands with SK (Wave), KT, feeling abandoned, became the largest rock blocking the path. The Fair Trade Commission imposed shackles such as ‘price freeze’ and ‘prohibition of refusing content supply to other OTTs’ due to monopoly concerns, plunging the merger into a deadlock where it can neither advance nor retreat.
• Tomorrow (Future): The foggy landscape splits into three paths. Is there a path where everyone smiles together and plants the flag at the summit as ‘K-OTT Champions’? Or a path of ‘mutual destruction’ where they blame each other and fade away in the fog? Or a ‘thorny path’ where a half-formed alliance without KT struggles on?

Eye from Above: From Your Remote Control to the National Assembly

Now, let’s change the altitude.

• Lowest level (Microscopic view): This issue is about the remote control in our hands right now. Users are confused about “When will the apps merge? Will the UI improve? Will my subscription fee increase?” There is anxiety over user experience (UX) and subscription price hikes.
• Middle ground (Industrial view): The chessboard of giant companies CJ, SK, and KT comes into view. CJ and SK desperately need an alliance for survival, but for KT, this merger poses a real threat of weakened competitiveness in the IPTV market and reduced bargaining power as a content producer (Studio Genie). A complex battle of interests and pride is fiercely underway.
• Highest level (Macroscopic view): We realize this is not just a corporate fight but part of a ‘cultural war’ to protect ‘media sovereignty.’ It is a national issue of whether we build a breakwater to protect our story or surrender everything to the waves of massive global capital.

Microscope of Causality: The Butterfly Effect of the Red ‘N’

Finally, let’s look through the microscope. What was the starting point of all this chaos? It was a butterfly named the red ‘N’ that flew into the Korean market. Its flutter was a thrilling wind carrying K-content to the world but also a massive typhoon shaking domestic platforms to their roots. To survive this storm, Tving and Wave joined hands, fracturing the KT alliance, while the government (Fair Trade Commission) imposed a ‘price freeze’ safety net. All these events are linked in one huge chain reaction.

Part 2: Flipping the Map of Thought: How to Find Hidden Paths

So far, we have talked about the mountain’s ruggedness while looking at the given map. But when no path is visible, sometimes a shift in thinking—flipping the map—is needed. Shall we flip our mental map together using the tools of ‘Problem Redefinition’ and ‘Insight Amplification’?

Change the Question, See the Answer

We kept asking, “How do we persuade KT?” But flipping the map from KT’s perspective changes the question:

“How can CJ and SK, who became ‘traitors,’ show me (KT) a future we must walk together?”

Also, let’s broaden the question “How do we beat Netflix?” This is not just a subscriber count battle in the domestic market.

“How can we become the ‘central bank of K-content’ and win the global ‘IP finance war’?”

From this perspective, Wave’s decision to hand over the IP of the original to Netflix was a painful event akin to a bank losing precious gold bars to thieves.

Digging Deeper with “Why?”

“Why does KT oppose?” Asking “Why?” five times reveals a surprising truth.

1. Why? → Because their share value and influence will be diluted after the merger.
2. Why? → Because CJ and SK don’t sufficiently guarantee KT’s interests.
3. Why? → Because they themselves are bleeding heavily and have no capacity to care for KT.
4. Why? → Because to beat Netflix, all resources must be poured in.
5. Why? → Because the domestic market alone cannot achieve economies of scale.

Ultimately, KT’s opposition is not a simple emotional fight but a desperate struggle for survival caused by the small scale of our market, which falls short of global standards. If this merger fails, what future awaits? Everyone bleeds and collapses, leaving only the red ‘N’ flag fluttering on a battlefield without winners. KT’s opposition is not the best move but a ‘desperate attempt to avoid the worst’ due to lack of better alternatives.

Then the path becomes clear. The solution is not a few extra shares in a ‘stake negotiation’ but found in the grand picture of ‘restructuring the business portfolio’ by combining the strongest weapons of the three companies to redraw the map.

Part 3: 10 Emergency Tools for the Summit Climb

Now that we understand the mountain’s essence and have discovered new paths, let’s open the bag called ‘Innovative Solution’ and introduce 10 emergency tools to help take the final step to the summit.

1. ‘Golden Carriage’ for KT Offer KT not just a simple ride but a golden carriage to travel most comfortably and splendidly to the destination. This includes exclusive early access to core content of the integrated OTT on KT’s IPTV (Genie TV) for a certain period and guarantees overseas distribution revenue of content produced by KT’s subsidiary (Studio Genie).
2. ‘K-Content Trust’ Account Imagine part of your monthly subscription fee directly investing in your favorite dramas or movies, with returns if successful. This offers a new experience beyond simple consumption—becoming a ‘shareholder of K-content.’ It builds strong fandoms and reduces production cost burdens.
3. ‘K-Culture Data Dam’ Combine the vast customer data of CJ (entertainment), SK (telecom), and KT (telecom) to build a massive dam. This dam will predict “Which actor-director pair will be a hit?” and recommend personalized content, becoming the heart of data-driven K-content creation.
4. ‘Genre Universe’ Expansion Pack Like the world of expanding beyond drama into webtoons, games, and merchandise, build an attractive universe around a single IP that keeps fans engaged. This maximizes IP longevity.
5. ‘AI Concierge’ Service Until the two apps merge, a smart AI butler suggests perfect content courses crossing both platforms, e.g., “You laughed heartily at Tving’s variety show; how about ending your day calmly with Wave’s masterpiece movie?” It acts as a bridge to prevent user churn before technical integration.
6. Global Fandom City ‘KOKOWA Universe’ Centered on Wave’s US service ‘KOKOWA,’ build a metaverse capital of K-culture where global fans gather in virtual spaces to tour drama filming locations and interact with actor avatars. This becomes a new revenue model and playground for global fandom.
7. Ad-Supported Free Channel ‘Channel C·S·K’ For those burdened by subscription fees, open a FAST (free ad-supported streaming) channel offering 24/7 access to CJ, SK, and terrestrial broadcasters’ masterpieces. This attracts new viewers and generates additional ad revenue.
8. ‘IP Distribution Hub’ Instead of knocking on Netflix’s door ourselves, become the hub that discovers great domestic IPs and brokers sales to Netflix, Disney+, etc., growing together and changing the market landscape. A strategy turning ‘enemies’ into ‘customers.’
9. ‘K-Media Alliance’ Membership Uniting telecom, shopping, film, broadcasting… CJ, SK, KT, and terrestrial broadcasters create an integrated membership offering unprecedented benefits (telecom discounts, shopping points, movie coupons). This promises a strong lock-in effect.
10. ‘People’s Original’ Project Through nationwide public submissions, stories from our neighbors become blockbuster productions worth hundreds of billions of won, realizing content democracy where viewers are owners. This can be the surest way to garner national interest and support.

Epilogue: The Future Seen from the Giant’s Shoulders

After a long climb, we finally stand at the 90% mark. The summit feels within reach, but the last step will never be easy. This grand journey has taught us much: sometimes cooperation beats competition, a greater vision outweighs immediate gains, and understanding and wisdom among each other can be more powerful weapons than complex calculations.

Will this giant safely reach the summit? What will the view from the top look like? The answer now lies in the hands of CJ, SK, and KT. And the attention and support from all of us watching their choices will also lend strength to the giant’s final step. Let’s watch the last chapter of this epic drama together.