SAMSUNG TV PLUS:
Head of Content Distribution Strategy at CJ ENM Eunhye Park faced a decision. Park was tasked with identifying fresh commercial ventures to take advantage of the company’s substantial content library. CJ ENM was already regarded as a pioneer in the K-culture sector because of his reputation for creating and disseminating popular content in a variety of genres. The corporate leaders of CJ ENM wanted to further develop their global market since their operating businesses were steady and Korean pop music, TV shows, and films were becoming more and more well-liked throughout the world.
The media landscape is constantly changing, and while CJ ENM’s content distribution companies, including many cable channels and “TVING,” a proprietary streaming service, were already well-established, one mistake could send them into a tailspin. Park’s responsibility was to discover the next big thing for the corporation, which is known for keeping an eye out for new prospects.
Park’s aims were twofold because looking for new business prospects is often accompanied by uncertainty: first, he wanted to investigate industries where CJ ENM’s advantages would help to lessen risks; and second, he wanted to identify partners who could share the risk and cooperate to develop the industry. Then there are Samsung TV Plus, a global FAST service run by the market leader in the global TV market.
Samsung enters the content market with Samsung TV Plus
Samsung has worked tirelessly to improve users’ lives through innovation. The company recognized the opportunity to capitalize on the TVs already installed in homes to offer additional services, even if most of the efforts are frequently featured on the product side. We wanted to take advantage of this opportunity with TV Plus because there are so many Samsung TV customers already in the world, according to Junga Park.
Samsung had been the market leader in worldwide TV sales for nine years running when Samsung TV Plus was initially introduced in 2015, and has now done so for 17 years, indicating that it has the strong market position necessary to enter the content service industry. By having a position in both the TV device and content markets, Samsung aimed to provide current users a fresh viewing experience and generate ad revenue through its own platform.
With the appropriate collaborations, this might develop into an ecosystem where the platform, content providers, advertising agencies, and viewers themselves are all content. Samsung introduced TV Plus after recognizing this market.
Samsung had been the market leader in worldwide TV sales for nine years running when Samsung TV Plus was initially introduced in 2015, and has now done so for 17 years, indicating that it has the strong market position necessary to enter the content service industry. By having a position in both the TV device and content markets, Samsung aimed to provide current users a fresh viewing experience and generate ad revenue through its own platform.
With the appropriate collaborations, this might develop into an ecosystem where the platform, content providers, advertising agencies, and viewers themselves are all content. Samsung introduced TV Plus after recognizing this market. According to market research firm Omdia, 92% of all TV shipments in the first quarter of 2023 were smart TVs, which contributed to the expansion of Samsung TV Plus.
Over the course of eight years, Samsung TV Plus has developed into a sizable platform with a vast library of content. It now offers more than 2,000 channels in 24 countries and will have amassed watching time of three billion hours globally by 2022. After making a name for itself in the market, Samsung expanded Samsung TV Plus to include mobile devices beginning in April 2021, followed by smart monitors and the Family Hub refrigerator in 2022, enabling users to take advantage of additional connected experiences.
Diversifying content offerings in each of the operational markets was crucial during this time for maintaining the platform’s allure. teamed with CJ ENM in Korea to increase its competitive edge.
Rapid market expansion through shared cooperation
CJ ENM had been keeping an eye on the development of FAST while looking for new strategies to increase its worldwide market presence and recognising it as a viable instrument for reaching new audiences. Eunhye Park, Head of Content Distribution Strategy at CJ ENM, remembered how she was introduced to a platform while working in Japan by a senior colleague who turned on the TV. Despite the fact that content was being played, this was neither a typical broadcast television station nor an over-the-top (OTT) streaming service. There were no more connections attached; only the power and internet were. FAST was a free, ad-supported streaming service.
FAST provides free access to ad-supported content on digital channels via smart TVs linked to the Internet, in contrast to many OTT streaming services. Customers who desire a less expensive TV plan in North America and Europe frequently choose this option. According to Omdia’s analysis, the worldwide FAST market has recently prospered as total revenue increased 20-fold between 2019 and 2022. With sales estimated to increase to 12 billion USD between 2022 and 2027, the popularity is anticipated to last.
Additionally, the business required statistics on the digital sector, which was challenging to find. While the media landscape was getting more and more complex, Eunhye’s Content Distribution Strategy team was made up of a group of professionals who each brought a wealth of knowledge to the table. Collecting cross-platform data and assessing user preferences proved to be difficult with cable TV, OTT streaming services, digital platforms, and more.
On one platform, a program may be successful, yet fail on another. Depending on the platform, short- and long-form material also performs differently. When constructing a channel, it is imperative to clearly identify consumers’ interests, and this necessitates a vast amount of data, according to Eunhye.
CJ ENM required a partner that could contribute financially and who could consistently deliver accurate viewing data. Both were found in Samsung TV Plus by CJ ENM.
Making the viewers, in particular, happy
The addition of CJ ENM’s brand channel to Samsung TV Plus in May 2023 helped the platform advance to become Korea’s top FAST service.
Samsung is now aiming Samsung TV Plus at current smart TV users as a result of its partnership with CJ ENM. Beyond only selling new TVs, we are concentrating on how to enhance the viewing experience for customers who already use our products, according to Junga.
Samsung TV Plus is selecting a range of older, fan-favorite content and repackaging it on the platform, in addition to newer, more trendy series, to keep offering consumers the greatest content available. This motivates viewers to replay their preferred shows, including those they might have forgotten. In turn, this benefits content producers. According to Jipyeong Cheon of CJ ENM, “people easily and naturally forget content they enjoyed watching in the past.” By making older titles available on the platform, Samsung TV Plus is assisting users in rediscovering this nostalgia and regaining its popularity.
Samsung TV Plus benefits platform and content partners, but consumers gain the most. Users may access a variety of content for free, and Samsung TV Plus creates a customised list of content based on each user’s individual preferences, making it easier for users to discover new movies and TV shows they’ll like. Samsung is always looking for ways to improve its services in order to give the best and most effective customer care. In order to give our customers better experiences, we are continuing to further diversify our content and raise partner profitability, according to Junga.
Mutual Advantages for Long-Term Business Development
Although FAST has grown tremendously since its debut, many people are still unaware of it. Long-term investments must be maintained in the FAST market in addition to cultivating connections with partners and customers. To improve user experience and grow the market in Korea and elsewhere, Samsung is contacting content creators. Samsung is assisting FAST in Korea in becoming a significant digital advertising market.
Samsung TV Plus gives partners the ability to speak with and engage consumers directly thanks to a number of cutting-edge capabilities, such as advertising and content that is tailored to each user’s individual interests. Additionally, because the platform is accessible in 24 nations, businesses can reach out to new consumers by utilizing Samsung’s extensive global network. CJ ENM decided to partner with Samsung to enter the North American market after realizing these advantages.
“We first identify our partners’ capabilities during negotiations and then propose several channel options. We gained knowledge on how to support and help our partners through our triumphs,” stated Junga.
Future of the Media in the FAST Market
The Samsung TV Plus future is promising. According to Omdia and Blue Ant reports, the popularity of smart TVs will boost the number of monthly active users of Samsung TV Plus to 58 million by 2027. Samsung keeps adding new content to the platform to satisfy this demand and exhibit a variety of entertainment, ensuring that viewers will find something to like. In honor of the FIFA Women’s World Cup Australia & New Zealand 2023, Samsung just added FIFA+ to Samsung TV Plus globally.
Samsung and CJ ENM are trying to lead the FAST market not only in Korea but also in North America and other regions, in keeping with the continually evolving content consumption habits and streaming settings. Additionally, Samsung TV Plus is developing as a platform, with more partners and initiatives in the works.
