Lotte Cinema, the leading multiplex unit of South Korea will be embarking on its OTT journey to avoid the potential stagnancy in the number of cinemagoers. The company is planning to create a growth engine after witnessing a decrease in the number of cinemagoers. Netflix which is a big success in South Korea is also one of the reasons that Lotte is betting on online video streaming platform as a standalone product to reach as many customers possible.
Lotte Cinema plans to offer the OTT service as a transactional video on demand type, which means customers can purchase content on a pay per view basis like Google Play and iTunes.
Currently, Korea’s top three telecom companies SK Telecom, KT and LG Uplus are also providing mobile video streaming services through their mobile apps. If reports are to be believed, South Korean OTT market is estimated to reach 780.1 billion won ($731 million) by 2020.