이 기사는 2022년 03월 08일 08시07분 thebell에 표출된 기사입니다

South Korean internet giant Naver not only uses partnerships with various players in the entertainment world, but also produces media content on its own in its push to expand its content ecosystem.

This two-track strategy contrasts with its rival Kakao Entertainment, which pursues vertical integration of content and distribution. Naver, however, apparently believes partnering with other industry players is a better way to expand its presence in the burgeoning content space.

Naver’s expansion into the content business started in earnest in October 2020 when the internet giant announced a share exchange worth 600 billion won ($489 million) with CJ Group’s affiliates. A few months later, it acquired Wattpad, North America’s biggest social storytelling platform, for more than $600 million last spring.

As a result of the share exchange, Naver owns 4.99% and 6.26% of CJ ENM and its drama production subsidiary, Studio Dragon, while the latter two firms hold 0.32% each in Naver. Their partnership is aimed at boosting content competitiveness for global markets. They also reportedly agreed to form a 300 billion won joint fund over three years to produce content.

In 2021 Naver further strengthened its partnership with CJ ENM by investing a total of 57.4 billion won in the company’s streaming service Tving. Naver started providing its premium service users with an option to select a Tving subscription plan and is working with the streamer to secure original content.

Naver also partnered with HYBE, the entertainment company behind K-pop group BTS, by injecting 411.9 billion won into its subsidiary, Weverse Company, last year. After the transaction, Naver’s fan community platform, V Live, was integrated with Weverse Company. Now, there are more than 37 million of combined monthly users of the two platforms worldwide.

As part of their partnership, Naver and HYBE unveiled “7 Fates: Chakho,” a digital comics featuring seven BTS members, earlier this year. The series, which are available in 10 languages, garnered over 15 million views in just two days after the release.

Content production ability

In addition to its partnerships with leading industry players, Naver has content production ability based on its intellectual property rights to web novels and web cartoon series. Recent drama hits produced by Studio N, Naver Webtoon’s production subsidiary, include “Yumi's Cells” and “Our Beloved Summer.”

Naver Webtoon, owned by Naver, acquired a 52.19% stake in 3D animation production studio Locus for 23.5 billion won last year. They are working together to make animation versions of popular webtoon series such as “True Beauty” and “Yumi's Cells.” Wattpad Webtoon Studios was also launched last June.

Naver’s ability to produce media content on its own helps reduce dependence on its partners, giving the company greater bargaining power. Naver is also collaborating with Marvel Comics and DC Comics. (Reporting by Seul-gi Kim)